cancel
Showing results for 
Search instead for 
Did you mean: 

FHA Loan approval with unpaid charge offs?? Is it possible?

Established Member

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?


Starting Score: 621
Current Score: 678
Goal Score: 700


Take the FICO Fitness Challenge
Message 1 of 5
4 REPLIES
Regular Contributor

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?


Starting Score: EQ 603~TU 613
Current Score: EQ 763~TU 706
Goal Score: 810


Take the FICO Fitness Challenge
Message 2 of 5
Established Member

Re: FHA Loan approval with unpaid charge offs?? Is it possible?

No, Capital One still owns them.


Starting Score: 621
Current Score: 678
Goal Score: 700


Take the FICO Fitness Challenge
Message 3 of 5
Frequent Contributor

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.

Message 4 of 5
Regular Contributor

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!


Starting Score: EQ 433 12/2008
Current Score: EQ 649EX (LO Pull) 683 TU 663
Goal Score: 700 12/11


Take the FICO Fitness Challenge
All baddies gone! lates have hit the 2 year mark!
Message 5 of 5