FHA Loan while student loan in rehab?

[Rissa8]

Is it possible to get approval for an FHA while your student loans are in rehab from a default?

[StartingOver10]

No, not while they are in default.

[Rissa8]

What if I PIF?

[StartingOver10]

I think you would be better off to rehab the loans - have the lates removed after rehab and then pay in full if you want. I'm not 100% sure, but I think you can only remove the lates after the rehab is completed and only if they are federal loans. Check in the student loan section here to verify.

But if you are currently in default and you pay it off, then it will still show as a default, but a paid one.

Much better to get rid of the default notation

[Rissa8]

Thanks. I was trying to buy sooner rather than later. My mid score is 654. My LO pulled our reports and I have a laundry list to improve for my husband to get his score up to a min 620 but just saw this one student loan left under my name that I honestly thought was already paid. Haven't heard anything from CA or servicer, no tax off set, etc. I am really upset with myself. All my husband's stuff is "do-able" but now I feel defeated with this.

[Rissa8]

And here's an additional question....and it may be a stupid question, I'm new and still learning. Would it be worth me applying for a new credit card and using that to PIF the default SL? I have money in the bank, but my LO also told me to keep my savings as high as I could and I will need to pay off several small collection accounts of my husband's that I will be pulling money out of the savings account for. Is the new inquiry and, if approved, new debt worth it?

Any guidance is much appreciated.