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Question before I pull the trigger.

Established Member

Question before I pull the trigger.

Ok so I am about to pull the trigger within the next couple of months and apply for a mortgage. I am waiting for my credit card accounts to update from 83% Util. down to 3%. I'm currently at a 629 middle score so I'm hoping it gives me a nice boost.

 

Anyways on to my question. I have a repo from almost 2 years ago and I am in a settlement agreement with them to get it paid off. The Mortgage Broker wasn't concerned about it, just that he wants me to pay down my utilization before we go further. It's the only bad account I have and I'm worried about it keeping me from getting an FHA and USDA mortgage depending on how much my score increases from paying down my util. Should I be worried about the account? It's not showing as a collection, just shows a $7300 amount due and hasn't updated the amount in 5 months. I'm just worried about it holding me back when the time comes. Feel free to give me any advice, as I'm very nervous. Thanks


Starting Score: 451Smiley Sad
Current Score: 620
Goal Score: 650+


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4 REPLIES
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Valued Contributor

Re: Question before I pull the trigger.

It could be an issue, if I were in your shoes id wait till its paid and get it to report a zero balance then pull the trigger.

Super Contributor

Re: Question before I pull the trigger.

You mentioned settlement agreement, do you mean a payment plan?  Or did they just agree to a lesser amount which you haven't paid anything on yet?

Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime) since 2002, based in Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

Established Member

Re: Question before I pull the trigger.

They offered a settlement agreement and a payment plan. I have $2400 left to pay off the settlement in monthly payments until it's paid off. I was going to wait until i got in a house to pay it completely off just in case they updated and it hurt my score.


Starting Score: 451Smiley Sad
Current Score: 620
Goal Score: 650+


Take the FICO Fitness Challenge
Super Contributor

Re: Question before I pull the trigger.

So it sounds like you are paying it off, that is fine.  The payment you are making would just be included in your debt ratio and if it's been at least 3 months of payments then it's real unlikely you'd be required to pay it off, even if you just started last month on a payment plan it is still possible it'd be OK.

Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime) since 2002, based in Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage