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Brandytab
Posts: 18
Registered: ‎10-10-2012
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Mortgage Scenario, FHA/Collections

Hi!

 

I posted my situation on here earlier in the month and it's changed a bit now and I'm trying to figure this out.

 

I have a collections with Comcast, and I'm in contact with their executive care, hoping that it will be removed.  I'm going to assume that it wont for this question.

 

When this popped up, my credit score decreased to 614.  That's not going to cut it for FHA, correct?  Is there any way to get a 614 done?  There have been zero lates on my credit in the last 12 months, and this collection is dated to June on my report.  It is a paid collection, zero balance.

 

I was planning on putting 3.5% down.  If I instead put 20% down, do I have a shot at getting this financed?  Is there a difference in what FHA 'allows' for dings if you put the full 20% down?  I really don't want to, but if it will make this work - I will.  We are living in this house and need to buy is ASAP given the owner being told today that she has to refi by the end of the year.  She can't get qualified to refi.  This is a crappy situation.  Had that collection not popped up, this would be no issue.

 

Thanks!

Moderator Emeritus
webhopper
Posts: 7,225
Registered: ‎09-16-2011
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Re: Mortgage Scenario, FHA/Collections


Brandytab wrote:

Hi!

 

I posted my situation on here earlier in the month and it's changed a bit now and I'm trying to figure this out.

 

I have a collections with Comcast, and I'm in contact with their executive care, hoping that it will be removed.  I'm going to assume that it wont for this question.

 

When this popped up, my credit score decreased to 614.  That's not going to cut it for FHA, correct?  Is there any way to get a 614 done?  There have been zero lates on my credit in the last 12 months, and this collection is dated to June on my report.  It is a paid collection, zero balance.

 

I was planning on putting 3.5% down.  If I instead put 20% down, do I have a shot at getting this financed?  Is there a difference in what FHA 'allows' for dings if you put the full 20% down?  I really don't want to, but if it will make this work - I will.  We are living in this house and need to buy is ASAP given the owner being told today that she has to refi by the end of the year.  She can't get qualified to refi.  This is a crappy situation.  Had that collection not popped up, this would be no issue.

 

Thanks!


If you put 20% down you can go all the way down to 580....    or maybe its 10% down, you can go to 580.    something like that. ...

 

is she being forced to refi into her name due to divorce or something similar?


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webhopper
Posts: 7,225
Registered: ‎09-16-2011
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Re: Mortgage Scenario, FHA/Collections

Best advice,  talk to your lender about doing an FHA loan with 10% down at your current score of 614.   if they won't, maybe they will counter with 15% or 20% down

 

Credit Qualifications
  • To qualify for a 3.5 percent down payment, the homebuyer must have a credit score of 580 or higher. If the buyer's score is below 580, the minimum down payment is 10 percent. The Department of Housing and Urban Development touts FHA mortgages for easy credit qualification. However, the lender may require a higher credit score to approve a buyer for an FHA mortgage.


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Brandytab
Posts: 18
Registered: ‎10-10-2012
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Re: Mortgage Scenario, FHA/Collections

Yes, exactly.  She is the only one on the title, they are both on the loan.  They've been divorced for 6 years amicably, but I guess he needs to do some things that he can't with his name on the loan.

 

 

Will the collection - as it's only 4 months old (though paid and the only collection on my credit) prevent approval though, even with the high down payment? 

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webhopper
Posts: 7,225
Registered: ‎09-16-2011
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Re: Mortgage Scenario, FHA/Collections

Its hard to say... what is the date of first deliquincy?

Starting Score: 08/29/2011 TU 671 EQ 674
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Member
Brandytab
Posts: 18
Registered: ‎10-10-2012
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Re: Mortgage Scenario, FHA/Collections

Date of first delinquency on equifax is april.  First date reported is June.  Paid off in October.

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beb86
Posts: 1,115
Registered: ‎10-31-2011
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Re: Mortgage Scenario, FHA/Collections

Its lender specific even though FHA will allow down to 580 most lenders still require 640 or 620 middle...a benefit of FHA @ 20% is no PMI which would save a substantial  amount 

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