FHA loan with a car repossession.

[texas1286]

My husband and I are qualified in every aspect for a conventional loan, except for one problem. There is an unpaid voluntary car repossession on my husbands credit report dated back to 2009. Our LO advised to just wait until it drops off in about 18 months but we are wanting to try everything possible to get into a home before then.

The repossession has a balance of 10,000, does anybody know of any options to get this taken care of other than paying the balance in full? Also, would we qualify for an FHA mortgage loan with this repossession? Its not a judgement either.

[edcampbell613]

Find a different lender, sounds like you are looking at a big bank,

Most lenders would just ask for a letter of explanation regarding it.

[texas1286]

Awesome, that's what I've been reading, thank you for your response!

[notfancy]

I'm going to go out on a limb here and assume you're from Texas, so check out this thread: http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/State-Resources/td-p/376615

I know Texas is particularly consumer friendly and so perhaps there is something in your codes and statutes that would help you get that repo of your credit report sooner. I don't know how or what, but it can never hurt to know your state's debt laws.