FHA loan while in a debt management program.

Asked by Thejedi, Virginia Sat Sep 22, 2012

My wife and I are trying to get an FHA Loan. We enrolled in a debt management program in February of this year. My mid score is 685, hers is 624. Both of us have been at the same job 15 years. The DTI is 13/42. Will the enrollment in the debt management program keep us from being approved?

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6
Natclay2001, Home Buyer, Seattle, WA
Mon Mar 10, 2014
I'd be interested in your outcome Thejedi. My husband and I are looking into a FHA loan and are 7mths into a debt repayment plan. We have excellent credit and no late payments we enrolled in the Debt Mangement program because the interest on our CCs was making it impossible to pay them off. I was wondering if you got approved for that FHA loan? Thanks Natalie
0 votes
Thejedi, Home Buyer, Virginia
Tue Sep 25, 2012
Well, my appraisal check posted to the bank yesterday and HR informed me that they received a fax today to verify employment and pay. Hopefully, this is a positive sign that this is moving in the right direction.
0 votes
Misty Mount, Agent, Yorktown, VA
Sat Sep 22, 2012
I would strongly suggest you speak with a good lender. It sounds to me like you would be ok and I hate to see people waste money by paying someone Else's mortgage. Im here if you need a referral. 540 903 6686
0 votes
Thejedi, Home Buyer, Virginia
Sat Sep 22, 2012
There's no bankruptcy, judgements, charge offs, etc. The only issue is the debt management program. We weren't even late before we started the program. The only reason we started DM was because we weren't gaining any ground on getting our balances paid. 20%+ interest rates were killing us. We also got a letter from DM giving the ok to obtain a mortgage. I also sent a letter explaining my reason for entering DM. Now the place we are renting is up for sale but outside of what we can afford to purchase. Other rent in this area is more than what it would cost to purchase which is why we are trying to go this route.
0 votes
Maria Cipoll…, Agent, Coral Springs, FL
Sat Sep 22, 2012
FHA requires any credit cards on a debt management program to have a minimum of twelve monthly payments, and be in good standing. I also know that a letter from the debt management company is required stating that it is okay for you guys to obtain a mortgage. You should consult a mortgage broker and find out more details.

Best of Luck,

Maria E. Cipollone

http://www.Flahomespecialist.com.
0 votes
Misty Mount, Agent, Yorktown, VA
Sat Sep 22, 2012
Not necessarily. It doesn't cost anything to talk to a lender. If you've paid your debts on time and have no judgments or bankruptcy on your credit then you may still get approval. It also depends on your monthly bills and income.
I know several lenders in the area that you can call. I even have cell phone numbers so you can reach them on a weekend.
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