FHA, will I get approved??

[Anonymous]

Hello guys,

My wife and I are applying for an FHA mortgage loan, and we have an old second mortgage on our credit for almost 70k that was charged off back in 2012 on our credit report. The lender we are talking with is asking about it, and if we are paying on it. I told her that we are not, and have not payed anything on it since before the house was foreclosed on. As it stands now, the second mortgage is out of the SOL, so I am legally covered, but I am curious if this item being on my credit will preclude FHA loan approval?

Also, they provided me with a credit report they pulled from Credit Technologies Inc, and there is a page with a "Level one decision, score (model B)," does anyone know what this is, and what the score means?

Thanks guys.

[Anonymous]

I should also mention that the debt, if calculated with their 5 percent rule, would put my DTI ratio at 57 pervent.

The debt is time barred by the SOL, will they look at it?

[Anonymous]

FHA will treat a second mortgage charge off the same as a foreclosure, and will require a three year waiting period. You will have to ask your lender how/if they will specifically calculate the debt in your DTI.