topic Re: Do I qualify for a mortgage? in Mortgage Loans

Do I qualify for a mortgage?

Anonymous — Thu, 30 Apr 2015 00:49:33 GMT

Credit. 603 631 626 mortgage scores from here
i have 4 unpaid collectios for a total of 5k from early 2012 would I need to pay those? They wont PFD
Income. 61k last year 65k this year
Source of income. hourly
Monthly debt payments. 690 car note, 50 credit card
Employment w2 been there 9 years
Assets/Reserves.
Location. Beaumont Texas 77707
Property. single family house
Value. 130k
Occupancy. Primary residence
Transaction Type. FHA

Re: Do I qualify for a mortgage?

Anonymous — Thu, 30 Apr 2015 13:01:29 GMT

No, those collecitons total too much collectively and are recent.

Re: Do I qualify for a mortgage?

Anonymous — Thu, 30 Apr 2015 13:39:04 GMT

I disagree on the recency being an issue - they're over three years old. I know that a USDA loan only has a twelve month requirement, and you're well past that. You *might* pre-qualify, but will most likely have the condition of paying off those collections, or at least evidencing a payment plan with the creditor, the monthly of which will be factored into your DTIR. Your car note is already pretty huge, so with the addition of the collection payments, your ratio might kick you out of the price range you're looking for.

I would suggest working to settle those collections ASAP. Since they won't PFD, and assuming you can't PIF, offer to settle for 25-50% and then pay it off immediately. Try to negotiate the wording from "Settled" to something more favorable, like "Settled in Full", or "Pays as agreed". Do not enter into a payment plan with a CA; just pay what you can get them to agree to in one lump sum and get it done. That way they'll come back closed with $0.00 balances when you try again for a mortgage. They'll still be there until they fall off, but the underwriter will be more forgiving knowing that those collections pose no threat to the mortgage.