I was wondering if anyone had any information as to approved lenders for title one loans, and just a little more information regarding my situation.
I purchased a new home and closed on August 7th. I know the requirements are to be in the home for 90 prior to attempting to obtain a title one loan. Purchase price was 335,000 and I went FHA. The house was in horrific condition, and I considered an 203k, but opted against it. I completely gutted the main floor and remodeled the bathrooms upstairs. I paid cash for this.
When I was going through the inspection process, I had a company come out to assess the fireplace. The entire top of the chimney needs to be rebuilt, as well as a new liner, etc. Cost is around $6500. I also want to finish my basement. So I am thinking I would like to take between $20,000 to $25,000. Here is my issue. I have an open collection on my credit report. It has been there for almost 4 years and I am NOT paying it. They could offer me a settlement agreement of $100 and I will not pay it. The balance is $12,000 and it is from a nursing home my father was in in Florida. I am in MD, and it was joint liability. They just let him leave, and then expected me to pay the balance for the time he wasn't there. He died shortly after.
So I guess my question is, I spoke with 2 lenders and the open collection was an issue for them. However, it wasn't an issue with my mortgage company (UWM), as I was approved without having to pay. So is this something specific for this loan? My debt to income ratio is low, zero balances on all cards for over a year, and I make about $120,000 a year. Credit is hovering around 650.
Cash is low now due to me spending cash on my renovation. I really would like to attempt to get this loan. Any assistance anyone can give me would be greatly appreciated. I am in Maryland.
