FHA- one paid utility collection?

[Anonymous]

Hi everyone!

In October I plan on applying for an FHA mortgage, and this is my first mortgage, so I have been on this forum for months reading past posts.

My credit is great, not even one late payment on any account. I have one CC with a limit of 4600 that will be paid off, and various student loans that are in good standing and have always been. However, a year ago a old utility account was posted for $181.00. I paid in about a month ago, so it is paid, closed.

My question- is this going to Hurt me in underwriting with the 12 month rule? It will be techically 18 months old when I apply, but was paid in 06/13

Thanks!!

[Anonymous]

Any help?

[frugalQ]

If the collection is paid, i think you should be fine.  There are many people who close with open collections...or they pay the collection at closing.

Did the collection drop your credit score?  You say in your post that your scores are good, so I don't think the collection will be anything more than a LOE during the underwriting process.

[Anonymous]

My current score is around 650, but once my CC is paid off it should jump considerably. Again, no bad marks whatsoever except the utility collection that posted June 2012, which I paid last month