In order to get an FHA loan, open/unpaid judgments either have to be paid in full or you must be on a payment plan. Since one of the two has been paid you just need to be concerned about the one you were served improperly on. A quick way would be to just pay it and get it over with, it doesn't seem like you would mind that either. You could either pay it outside of closing, or through the closing at the end when you bring in your down payment, etc., you would just also bring in the extra amount to pay the judgment. If you don't want to deal with keeping a paper trail of the judgment payoff then just pay it through closing. If you want to keep a paper trail for yourself & to show the underwriter (which I recommend this route) then go ahead and pay it now, get a copy of the satisfaction of judgment (you might need to contact the plaintiff's attorney to help with this) as that is what the underwriter will need.
@bubbles0605 wrote:
ok So, DH and I applied for a FHA mortgage the other day and were told after the cr pulls that everything was looking good ....
Also, what is our next step in the FHA process? Do I find a bank for the loan?
Since it appears you've already applied, if you like that company and the people there, then I would strongly consider going with them. I would also check with a few other places to make sure you are getting a fair offer in terms of interest rate & closing costs. Did you like the place you applied with?
@bubbles0605 wrote:
We found a place we LOVE and want but dont have the 3% at this exact moment, so my question is. Is it absolutely a necessity to have 3% to put down for an FHA or can it be done without a downpayment?
Currently FHA requires a 3% investment into the transaction, so if you don't have that amount then you can do one of a few things.
1. Can borrow from family/relatives, either secured (like a 2nd mortgage on the home) or unsecured (like a personal loan).
2. Get a gift from family/relatives, so this would not need to be repaid.
3. Apply for down payment assistance from your city, county, state, etc. Your income must be within eligibility limits though (usually about 80% of the county median income) and it's subject to availability of funds (most places should be replenishing their coffers this month though).
@bubbles0605 wrote:
Can the FHA be done with just DH on the loan since I have 2 judgmnets on there?
If your husbands debt to income ratio & credit qualifies by itself, then yes. Since you've already applied, a real quick, definitive answer would come from the loan officer who was helping you.
Question for you though - since you've already applied, have you also asked your loan officer your questions? We don't mind answering your questions, but I feel that it is important for you to be comfortable asking your loan officer them as well.
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