Can I qualify for FHA loan with paid judgement?

[Sublime_sonrisa]

I have a judgement reporting at all three CRAs. It was originally filed in Jan 2008 and paid/satisfied in 2010. My question is whether any members have had success getting a mortgage with a paid judgement? I've heard that an unpaid judgement makes your chances of getting a mortgage close to zero, but what about a paid judgement? It's due to fall off this winter but I'd like to get a home this fall when the weather is still nice.

[pizzadude]

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@Sublime_sonrisa wrote:

I have a judgement reporting at all three CRAs. It was originally filed in Jan 2008 and paid/satisfied in 2010. My question is whether any members have had success getting a mortgage with a paid judgement? I've heard that an unpaid judgement makes your chances of getting a mortgage close to zero, but what about a paid judgement? It's due to fall off this winter but I'd like to get a home this fall when the weather is still nice.

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I doubt it would be a show~stopper by itself, but it's certainly hurting your FICO score, which could make approval more arduous.

[ShanetheMortgageMan]

People get approved for FHA loans all the time with judgments - paid or not paid.  If it's not paid then it either needs to be paid or a payment plan set up with at least 3 months of payments.

If the judgment occurred in the last 12 months is when typically it prevents someone from getting approved for FHA.

[Sublime_sonrisa]

Thank you for all who posted. The info was extremely helpful. I double checked on the status of the judgement on my CR just to make sure it was showing as paid and actually it was not showing as satisfied, so I disputed online and sent in the documentation to prove I had paid it years ago... They updated it to satisfied on both EQ and EXP. TU deleted it completely and I actually got a 74pt score jump there. Yay! Looks like I can go ahead with my loan!

[ShanetheMortgageMan]

Nice going!

[Sublime_sonrisa]

Just a little update, I prequalified with an FHA loan a few weeks ago even with the paid judgement still reporting on EQ and EXP. I was able to negotiate a great price on my first home and we are closing on Sept. 26! I'm so pleased and excited that all my hard credit repair work (fueled by the excellent advice from valued members of the myfico community) has paid off and I've reached my goal! Thank you and send good vibes for a smooth closing!

[ShanetheMortgageMan]

Congrats!

[Sublime_sonrisa]

Final update! Closed on my new home yesterday and I actually went with a conventional loan since I had saved enough for more than 5% down. Felt so good to be credit worthy enough to do that and now have new home owner pride! Thanks again for the advice and info!

[Anonymous]

Nice Job and good luck!