FHA Loan Approval

[Anonymous]

The 580 is minimum score required for the 3.5 down and depending overlay of your lender could be minimum for approval. I assume you need to be on the loan to qualify? If you don't, your rate would be much better with your husbands scores.
It's generally a goos idea to listen to your LO but if paying them all off isn't an option I would atleast comply with an honest loe and the steps you have taken to insure that your on a rising path.
Good luck!

[DallasLoanGuy]

did the lender run a score simulator to back up his genius idea of settling the debts?

a lot of times old debt getting settled doesnt even move the needle

[Anonymous]

from what i see all of your DOFD ends by 2018 january on debts you have. imho it would be near stupid to your well being if after having waited to not have paid anyy debts until now ( nearly 7 yrs from dofd ) you suddenly wake up one good morning wake up conscious of wanting to pay them just becoz

a) you decided to buy a home and your income matters in the loan process

b) that paying something is better than not paying at all and thats justified. 

Remember, 'Elections have Consequences'. 

There is such a thing as Early exclusion which allows upto 3 months early removal /DELETION of BAD Tradelines which 

if aug 2017 that means early exclusion is May 2017 or thereabouts for oct its july n for jan 2018 igts oct 2017

 is it worth the wait until nov 2017 when all bad bad tradelines are forever gone from CR (the debt still remains unpaid and collectible) but you have an ALL CLEAR for a home mortgage and can breathe sigh of relief when applying for loan.

i really would wait till november unless

best of luck

[Anonymous]

Doesn't HUD/FHA have a rule that collections totaling over $2,000 have to calculated against DTI to the tune of 5% of the total balance?

If so, having over $10,000 in collections would add $500 to DTI. Could that be why she needs them paid off or removed? Would an extra $500 in debt payments hurt the combined DTI?

[Anonymous]

Don't pay a dime until you've exhausted all other avenues. Also, see if you can get EEs for those that are close to dropping off.