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Think I'll qualify for FHA?

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Laurenlou
Regular Contributor

Think I'll qualify for FHA?

My current scores are in my siggy...
 
I have 4 C/os- 2 paid, 2 unpaid. The 2 that are unpaid are $3500 and $1100. DOLA on these is 10/06.
 
$55000 salary, same company for 2.5 years. No late pays on my current CCs or car payment.
 
2 questions:
1.  Should I pay those 2 co's off? If I do, it would reset the DOLA to be current- would I have to wait 2 years after that to qualify for FHA?
2. Do you think I could qualify for FHA in the next couple of months without paying those off?
 
I am looking at purchasing a home around $130-140K in Dallas, TX.
 
Thanks!
Message 1 of 4
3 REPLIES 3
BrianB_The_Loan_Professor
Valued Contributor

Re: Think I'll qualify for FHA?

Here is what I suggest
There is no knowing if you need to pay those off until you apply. I would apply first and see if you get an automated apprval. If you do send it in without paying. The lender may stil request it but it is not required by FHA. Then if you dont get an approval but it gets a refer, let the underwriter tell you that you need to pay them off. That way they wont look at new credit if it does impact the scores.
If they dont ask you udont have to pay.
Basically apply and let someone tel you that you need to pay them beore doing anything
 
Good Luck
Brian
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Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
Message 2 of 4
Anonymous
Not applicable

Re: Think I'll qualify for FHA?

COs are not the same as collections....if you have any with balances...they are counted towards your overall UTL...and bringing your scores DOWN....so you might want to pay them...to help yourself...and your scores....better scores....better rates....
Message 3 of 4
DallasLoanGuy
Super Contributor

Re: Think I'll qualify for FHA?



Laurenlou wrote:
My current scores are in my siggy...
 
I have 4 C/os- 2 paid, 2 unpaid. The 2 that are unpaid are $3500 and $1100. DOLA on these is 10/06. dont touch them until you apply.
 
$55000 salary, same company for 2.5 years. No late pays on my current CCs or car payment. great
 
2 questions:
1.  Should I pay those 2 co's off? NOT UNTIL AFTER YOU APPLY If I do, it would reset the DOLA to be current- YES would I have to wait 2 years after that to qualify for FHA? not necessarily
2. Do you think I could qualify for FHA in the next couple of months without paying those off? looks good so far.
 
I am looking at purchasing a home around $130-140K in Dallas, TX. you mean: The 'Great State' of Texas
 
Thanks!



Retired Lender
Message 4 of 4
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