Hello, and thank you all for your advice and input on this forum. The information is really helpful.
I have a question regarding conventional loan approval with a 5+ year old charge off. Mid credit score is 705. No other negatives on credit. Credit card utilization at 48%, so could easily decrease this if needed. Charge off is $26k auto that I co-signed for in 2013 - stupid and will never do again. Charge off is past SOL, though I've read here that underwriters don't seem to take that into account. I also have read that charge offs are not required to be paid by Fannie Mae, but lenders still usually add the overlay.
I have 5-10% down payment cash available, first time home buyer. Do I have a chance that ANY lender would offer a conventional loan approval without the need to pay off the old debt?
Do I have a chance that ANY lender would offer a conventional loan approval without the need to pay off the old debt?
Usually its the larger lenders that add more overlays. So you might have luck with smaller lenders or brokers who can find you a lender that wouldnt require you to payoff.
Also, find out when the DOFD (date of first delinquency) is on the charge off. Negatives will fall off 7 years after DOFD.
Thanks for the reply! First date of delinquency was November 2015, so just past the 5 year SOL, but I've got another 2 years or so until this falls off of my credit report.