"In order to get an FHA loan, you cannot have any delinquent federal debts, such as a student loan or tax lien. In order to be eligible, you must make sufficient arrangements to pay off the debts and submit the plan in writing." Does anyone have any inside or personal experience? If my loans defaulted in 2006 and were consolidated, no longer show defaulted on National Loan Student Data base, and consolidation trade line in good standing, paid as agreed, am I ok? Or will former Defaults come back to haunt me yet again?
Starting Score: 656
@creditisbetter2 wrote:You need to check with your loan provider to make sure that you are in the clear and if so you should have received something in writing saying that you are in the clear. I defaulted on some of my student loans many years ago and in order to satisfy their requirements, I had to make 6 months of on time payments and I was reinstated but they (student loan company) sent me a letter stating I was no longer in default. Whatever your situation may be, the lender/underwriting will most certainly ask you for proof of being out of default. I would work on that ASAP. Who was your original loan servicer/lender?
@Student_Loans_Kill wrote:
"In order to get an FHA loan, you cannot have any delinquent federal debts, such as a student loan or tax lien. In order to be eligible, you must make sufficient arrangements to pay off the debts and submit the plan in writing." Does anyone have any inside or personal experience? If my loans defaulted in 2006 and were consolidated, no longer show defaulted on National Loan Student Data base, and consolidation trade line in good standing, paid as agreed, am I ok? Or will former Defaults come back to haunt me yet again?
My loans were paid through William D Ford, and I am making my payments on that. Your situations doesn't sound like a consolidation but a rehab (much better for your credit, I messed up too bad). Looking at my tradelines on my credit report will show they are zero balance now, "paid after collection default student loan or my favorite, turned into goverment"
But thank you for the advise, I will start that paperwork now
You are correct, mine was a rehab but it was with ford as well. are we dating ourselves???
@Student_Loans_Kill wrote:
@creditisbetter2 wrote:You need to check with your loan provider to make sure that you are in the clear and if so you should have received something in writing saying that you are in the clear. I defaulted on some of my student loans many years ago and in order to satisfy their requirements, I had to make 6 months of on time payments and I was reinstated but they (student loan company) sent me a letter stating I was no longer in default. Whatever your situation may be, the lender/underwriting will most certainly ask you for proof of being out of default. I would work on that ASAP. Who was your original loan servicer/lender?
@Student_Loans_Kill wrote:
"In order to get an FHA loan, you cannot have any delinquent federal debts, such as a student loan or tax lien. In order to be eligible, you must make sufficient arrangements to pay off the debts and submit the plan in writing." Does anyone have any inside or personal experience? If my loans defaulted in 2006 and were consolidated, no longer show defaulted on National Loan Student Data base, and consolidation trade line in good standing, paid as agreed, am I ok? Or will former Defaults come back to haunt me yet again?My loans were paid through William D Ford, and I am making my payments on that. Your situations doesn't sound like a consolidation but a rehab (much better for your credit, I messed up too bad). Looking at my tradelines on my credit report will show they are zero balance now, "paid after collection default student loan or my favorite, turned into goverment"
But thank you for the advise, I will start that paperwork now
But even with your situation, the underwriters will most likely ask for proof that you've satisfied your issue with Ford especially if that comment on the tradelines states that it was in default.
