641 Fico, with unpaid medical, loan types.

[RyanL]

Hey everyone, I guess I have a couple of quick questions. I went through some crap about 7 years ago, had to divorce the wife for basically putting us in financial ruin! Lost our house (FHA) all while hiding it all from me for almost a year. Thats the past, finally it has fallen off of my credit report, just climbed to the 641 Fico mark. A friend of mine is a realtor and showed me a few vacant houses, while recommending me to someone they regularly to business with mortgages at Chemical bank.

I called gave him my info, comes back and says my score is workable, but there are about 8 unpaid medical collections from my ex-wife totalling approx $3k that would need to be paid first before they could do anything. Now, I DO NOT want to pay them since they were my ex-wifes accounts (I'm stubborn). I will though, if that stands in the way of getting into a mortgage again. When I bought a house 10 years ago, medical wasnt a consideration on FHA home loans.

Here is a little data to help with my questions:

Income approx 50k/yr

2 CC - $1100 combined limit, 1 sec $650, 1 unsec $550. Less than 10% util.

No car payments, loans, etc.

Only medical as derog on credit reports.

1. Is medical included on FHA loan consideration now?

2. Should I be talking to a broker and not a bank? or, will they act as a broker and search for underwriting?

3. Since they already pulled my credit and I do go to someone else, how much will it drop my Fico being on the border (641) already?

4. Does USDA loan have the same qualification requirements? I am also VA eligible if that would help.

Thanks for any help

[RyanL]

I'll add a little more detail as well

This is in Michigan

I have been employed with the same company for 11 years

I have $35k in my 401k

i have access to have 10k gifted as well

I have a found a house that I am very interested in for 50k, but I am a little irritaed with my first talk with that particular bank. Thoughts?

[RyanL]

anyone?

[RyanL]

Can anyone suggest a more active forum??

[cocomadd]

Try speaking to a loan officer.  You have about a 2 week span to apply with another lender, but you are pretty much borderline in your score, so it is up to you.  I think FHA is more lenient, but every case is different.

[RyanL]

I have talked with another and they said that it depends on the underwriter. I contacted one broker this week...she is leaving for vacation until the 22nd...didnt refer me to anyone else in their office, so I am going to look for one more so its closer tp the date of the the last pulled report.

The 641 was my mid, low was 618, and high was 667. I am also looking for one who is qualified to do a VA loan in case that would be a better option.