Reply
Frequent Contributor
Posts: 346
Registered: ‎05-29-2007
0

Medical Collections & Old Charge off for FHA

Hello All,

 

I am trying to get an FHA Loan. My scores are 602, 577, and 496. I was unemployed and have medical collections and 3 credit card charge offs. The medical collections are showing a little over 1 year old...there are 7 of them. The credit cards are 2 years old.

 

Do I have to pay them off in order to get an FHA loan? I have 5 positive trade lines showing on my credit report.

 

If possible, can anyone recommend any Mortgage Companies that can assist with this?


Thanks so much for any information regarding this.

Valued Contributor
Posts: 2,661
Registered: ‎04-25-2011
0

Re: Medical Collections & Old Charge off for FHA

The medical might not be a huge issue, unless it is a lot of money, but the charge offs will definitely have to be paid off... Scott
Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Frequent Contributor
Posts: 367
Registered: ‎01-14-2012
0

Re: Medical Collections & Old Charge off for FHA

Most lenders require a 620 midscore for financing. I think Wells goes lower, but I believe you need at least a 580, and you're at 577.

 

I would work on getting your scores up, and clearing up the collections and charge offs, to improve your chances of obtaining financing.

 

Frequent Contributor
Posts: 291
Registered: ‎02-25-2012
0

Re: Medical Collections & Old Charge off for FHA

We were originally planning on FHA and working with a broker (now going USDA) We had several collection accounts and ours were all 5+ years old and we were told they needed to be taken care of in order to qualify.

 

I'd head over to the rebuilding boards and start trying to work on the accounts you have to get them removed via PFD, or paid and then removed via GW.

 

good luck!

2/24 (Lender Pull) EQ 613, TU 553, EX 589
April EQ 633, My Fico TU 638, EX ??
Current EQ 643, TU 652, EX 633 (lender pull 5/11)
Goal (we made it!!)- Over 640 middle by 5/15
Highlighted
New Contributor
Posts: 71
Registered: ‎02-26-2012
0

Re: Medical Collections & Old Charge off for FHA

I was just pre-approved for an FHA loan on April 30th with 2 medical collections totalling $495, which are almost 3 years old. I also have a charge-off for an old credit card that is more than five years old - this is reporting a $0 balance but was about $2,700 when I defaulted. My LO said that since the new rules for collections don't go into affect until July 1st, I do not have to pay off any of these. My midscore was 710. 

Frequent Contributor
Posts: 346
Registered: ‎05-29-2007
0

Re: Medical Collections & Old Charge off for FHA

THank you,

Frequent Contributor
Posts: 346
Registered: ‎05-29-2007
0

Re: Medical Collections & Old Charge off for FHA

Thank you for the information.

Established Contributor
Posts: 2,112
Registered: ‎09-25-2011
0

Re: Medical Collections & Old Charge off for FHA

what state do you reside in? it can matter a lot if you live in NY laws that would save you a lot of time and headache for a 5 year old collections/charge off.


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Senior Contributor
Posts: 3,491
Registered: ‎07-25-2008
0

Re: Medical Collections & Old Charge off for FHA


distantarray wrote:

what state do you reside in? it can matter a lot if you live in NY laws that would save you a lot of time and headache for a 5 year old collections/charge off.


IIRC, those laws only apply to paid CO/collection.


Starting Score: 675
Current Score: EX 753 FICO, EQ 737FICO, TU 738
Goal Score: 776 FICO


Take the FICO Fitness Challenge
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.