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Registered: ‎08-18-2010
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FHA Loan approval with unpaid charge offs?? Is it possible?

I am planning to apply for an FHA loan in a year.  I have two charge off with Cap One totaling about $15,000.  They hit me with thousands of dollars of interest.  Even though they are charged off they show up as "revolving account" balances ruining my utilization.  Would it be necessary to pay off these charge offs before applying for a FHA Loan?


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Registered: ‎03-12-2010
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Re: FHA Loan approval with unpaid charge offs?? Is it possible?

Am I correct in assuming they have been sold to a collection agency? And when were they charged off?


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Established Member
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Registered: ‎08-18-2010
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Re: FHA Loan approval with unpaid charge offs?? Is it possible?

No, Capital One still owns them.


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Registered: ‎03-06-2007
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Re: FHA Loan approval with unpaid charge offs?? Is it possible?


tkindred wrote:

I am planning to apply for an FHA loan in a year.  I have two charge off with Cap One totaling about $15,000.  They hit me with thousands of dollars of interest.  Even though they are charged off they show up as "revolving account" balances ruining my utilization.  Would it be necessary to pay off these charge offs before applying for a FHA Loan?


With that large of a charge off most lenders will probably require you to pay them off because they would be leary of a lawsuit and lien being placed against the home.  If you have the money to pay them, you can do it as part of your closing.  When you do apply for your mortgage either capital one or if sold the collection agency will also know and try to get you to pay it .  You could alway discuss a settlement.

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Registered: ‎08-28-2007
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Re: FHA Loan approval with unpaid charge offs?? Is it possible?

I had an unpaid charge off from 2005 for $2500.   I had no intention on paying it, but it was a condition set by the bank before I could go further in the loan process.

Much as I hated it, I had to pay it.

Good luck!


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