Approved for FHA with a blemish/collection on my account?

[jsmith111]

My score is 689, and my wife's is 744.  I have 1 collection on my account for $80, and it's been on there for 3-4 years.  No one's ever tried to collect this from me...I've never gotten a call or letter or anything.  Otherwise, I would've just paid the measly $80.

Will this hurt my chances of getting an FHA loan or are our high scores enough to overlook that?

Thanks.

[mgm4g5]

I have two collections on my file... They're both for $30. One shows paid and the other shows a balance. These are from several years back... I'm now waiting on final approval, but the underwriter has never said a thing about it. I think you'd be fine...

[Mike_B03]

You'll be fine. I believe only if you have collections over $1,000 (either single or as a total of all collections) AND they are newer than 2 years have to be paid.

[fdiggy]

I had a collection account from 2007 for $1,077 and it was never mentioned. They asked for some stupid things for conditions but the collection wasnt mentioned.

Im now just waiting on CLC after submitting the conditions.
Should get the call or email any minute now. Scheduled close is 29th.

And my middle score was 701. All lenders are different but should be fine. Worst Scenario you have to find a different lender.

Im going through First Premier Mortgage through middle man Patriot lending.

[wenbev]

I'd call them up and pay it.  Let the CO know you've never received any documentation and get it removed. PFD all the way if it's legitimate.  I say this from experience, you don't want to go to underwriting with that on your CR.  The underwriter may kick back the application and request you pay for it and write a letter before reviewing your file again.

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[jordanmedical]

Don't pay it unless they agree to a PFD, don't want to update it's last day of activity and hurt your score. If they ask to have it paid, request to pay it at closing.

[Walt_K]

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@jordanmedical wrote:

Don't pay it unless they agree to a PFD, don't want to update it's last day of activity and hurt your score. If they ask to have it paid, request to pay it at closing.

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+1.  Paying a collection is not supposed to affect your score, but there are way too many reports of people having their score drop after paying a collection.  If they do end up asking you to pay it, do it at closing.

[Uppingmyscore]

You should be fine. Good Luck :-)