Can I get approved for FHA?

[MsSara]

I have a repo from 08' that showed a zero balance. But just popped up with a balance of 6,000. My middle score is 640. Can I pay this after mortgage or is this a automatic show stopper? I make $110,000 a year and have not made a late payment in over 4 years I have 4 credit cards never late and a car note for 1200. 292 a month payment. no other bills thanks for your help!

[StartingOver10]

Check to see if there is an actual public record for the repo (judgment). Look in your county records because the bank will check.

Before you ever make application, if this is a judgment, take care of it. Once you make application for a mortgage, the CA will see it and become much less negotiable.

[ShanetheMortgageMan]

Does it report as a collection or judgment?  Or is it reporting as a charge-off?

[MsSara]

It shows as a CO the bank that I got the loan through went out of business and they sold it to another bank. I had the $ to make the payment the whole time but couldn't find where to make it. When I finally found the bank holding my note I set up a payment and gave them my new area because I moved and they repo'd it the next day. But there is no judgment. thank you

[ShanetheMortgageMan]

So with a charge off, FHA doesn't require it to be paid or in a repayment plan or automatically count 5% of the balance as a monthly payment.  That guideline only applies to collections & judgments.  However there is a chance that an underwriter could require it to be paid.  You could apply and see what the underwriter says, but have the money to pay it just in case.  It's also fine for you to settle on the account, if a lender requires it to be paid off you don't need to pay in full, just that it'd be a $0 balance.

[MsSara]

Thank you for your help! :-)