Home Buying in 85303>Question Details

Jesica, Home Buyer in Glendale, AZ

I ave 1400 medical collections... How long it would take for credit score to get enter after I pay this ... Nw my credit is about 639, 640...

Asked by Jesica, Glendale, AZ Sat May 5, 2012

Would like to buy a second home to live in...

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Answers

8
Jesica, when you pay off a collection your score will actually drop at first because it shows as a newer collection once it is updated. So it will probably take 90 days after you pay it off to get your score up. 639 fico will get the job done as long as everything else falls into place.
Call me and we can put together a game plan.
Thanks,

Jason Coleman
Loan Officer
602-451-5472
Peoples Mortgage
SavingsandLoans@yahoo.com
0 votes Thank Flag Link Wed Jun 20, 2012
Hi Jessica,

Your credit score will take a hit once you pay off these collections. There is a way to structure your purchase loan so you can buy this home now with medical collections & your current score.

Please feel free to contact me directly if you have any further questions, I'd be glad to help.

All the best,
Ros

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct
http://www.ezAZloan.com

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline loans (NO minimum credit score, NO appraisal required) Go Green rehab loans, HomePath, Investor Friendly (10 financed properties), VA, USDA, Jumbo, Conventional, plus, we allow Escrow Hold-Backs!
0 votes Thank Flag Link Wed Jun 20, 2012
Contact a local lender. They should provide you the best plan of action to purchase your home. I am aware of some of the paths of repair however important you contact them.

Feel free to contact me direct.

Lucinda Tkach
602-799-6846
0 votes Thank Flag Link Sun May 6, 2012
Jesica

We might be able to take care of this during the purchase, depends on the program and lender we choose.
0 votes Thank Flag Link Sat May 5, 2012
Takes about 3 -4 months once settled for a change in credi. Make sure to get them to agree to remove it as soon as you pay
0 votes Thank Flag Link Sat May 5, 2012
Jesica,
your score is fine and $1400 in collections is also ok as long as there is no judgements. You would qualify for an FHA loan as long as you have verifiable rent paid on time past 12 months, two year worth of work history (not all at once place either)
If you would like to start the approval process you can reach me this weekend during the day.

Jason Coleman
602-451-5472
Peoples Mortgage
Sr. Mortgage Consultant
savingsandloans@yahoo.com
0 votes Thank Flag Link Sat May 5, 2012
Hello Jesica,

It's best to get to all 3 scores being above 680 - more programs will be available to you, especially when buying a 2nd home (on the principal residence the banks are a little more flexible).

With medical collections - you can either "settle" - by maybe halfing the balance, paying the halfed balance at once, and get it in writing, specifying that the creditors either won't report the collection activity, or they will as "paid in full, or paid as agreed".

Or, you can pay the whole amount off gradually, again - getting this in writing, with reporting to credit agencies described as above.

FHA programs, f.e. now (since April 1, 2012) require all collection debt to be paid off down to $1,000.

Being at lower than 30% debt on all other available credit lines will help also - with your scores coming up by a lot.

If you have your 3 credit agencies report - make an appointment with a reputable mortgage professional - so that you could learn more on how to get your scores up.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Sat May 5, 2012
Irina,
I was reading your post and it all was right on the money EXCEPT FHA suspended the collections over a $1000 having to be paid off guideline. Cheers! Jason
Flag Sat May 5, 2012
* to get better after the amount is paid off...
0 votes Thank Flag Link Sat May 5, 2012
Your score will actually drop if you pay them off at first. Then it will take 3-6 months for it to have a good effect on your score. Paying down credit limits actually works better than paying off collections.
Flag Sat May 5, 2012
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