New Member
DVS1
Posts: 5
Registered: ‎09-06-2011
FHA Qualifying Chances and CA Settlement reporting importance

I'm hoping you can tell me if I can qualify for an FHA loan by submitting the following information about myself:

 

Income: $5,600 montly gross ($71,000+ gross on final check stub of 2012)

Source of Income: Full Time, Salary, W-2

Monthly debt payments:  DTI – 7% ($400 monthly to IRS for the next year or so)

Employment:  how long at current job  - 5 years on 1/30/13

Assets/Reserves:  Cash on Hand $12,000 (adding 1K+ plus monthly); 3 cars – no outstanding loans

Location:  Scott County, Iowa

Property:  Single family house

Price Range:  $140,000 - $180,000

Transaction Type:  FHA mortgage (first time home buyer, sole residence)

 

 

Credit Stuff

Equifax - 688 as of 1/16/13 (Score Watch)

Accounts (with Neg Info)Amount OwedStatusWorst NegativeComments
Discover$0Bad Debt/Collection120 day late in June 2008Paid off in full Nov 2011
Target NB$0Paid as agreed120 day late in May 2008Paid off in full Dec 2011
Capitol One$0Paid as agreed120 day late in Nov 2008Paid off in full Jan 2012
HSBC$0Charge-off90 day late in Oct 2008(See next line)
CA for HSBC$4,342Collection120+ days past dueSettled in Full Jan 2013, Waiting on CR updates

 

TransUnion - 664 as of 1/8/13 (report pulled by me)

Accounts (with Neg Info)Amount OwedStatusWorst NegativeComments
Discover$0Paid after Charge OffNonePaid off in full Nov 2011
Target NB$0Paid as agreed120 day late in May 2008Paid off in full Dec 2011
Capitol One$0Paid as agreed120 day late in Nov 2008Paid off in full Jan 2012
HSBC$0Charge-offNone(See next line)
CA for HSBC$4,342Collection120+ days past dueSettled in Full Jan 2013, Waiting on CR updates

 

 

On 1/14/13 payment was accepted on Settlement in Full by the CA listed above.  This was a yearlong fight to settle the HSBC account listed above it.  Four months ago they got their lawyers involved, so I got a lawyer.  Despite repeated requests, my lawyer has proven useless in getting a PFD or any type of agreement from the CA regarding credit reporting.  On 1/14/13 after receiving payment the CA sent a form document (standard “release”) to my lawyer wanting all parties to sign it.  This document only mentions that matter is settled and I have no future obligation to them or the OC regarding the account.  It mentions nothing about credit reporting, 1099Cs, or NDAs.

 

I want to find and buy a house ASAP!  If I only have the signed “release” in hand, what are my chances of getting a FHA mortgage with the info provided?