What mortgage loan I can get after a credit tragedy?

[Anonymous]

I'm trying to buy our first house but the loan agent told me I have a charge-off of $393 in 2017 from an old Citibank credit card. This single record pulled my credit score from well over 700 to around 670.  The debt is still NOT sold to any collection company. I have contacted multiple Citibank senior managers with "goodwill letter" and "pay full for delete" proposal. But they are not willing to remove the charge-off because they think it's not their fault.

So the practical questions I have now are:

1.How much mortgage loan I can still apply for with this credit score and charge-off record?  my original target is around 600k to 1m.

Is it still possible to get high amount jumbo loan or I pretty much stuck with the conventional conforming loan?

2. Say if always pay all credit card/loan on time and try my best to rebuild the credit in the next few years, what kind of loan I should target for now? should I go with low-interest short-term loan first? or 30-year fixed loan and refinance later when the credit score gets better?

3. Should I pay-off the $393 debt to Citibank now immediately or wait until the mortgage lender ask me to do so?

[NC_Mtg_Loaner]

Pay the $393 charge off.

[Anonymous]

then?

[JVille]

The Charge Off will follow you until you get it paid off. And then time will take the credit scores. This needs to be paid and the sooner the better.

[VALoanMaster]

Pay the charge off in full & get a letter stating that the account is paid, zero balance. Once this updates with the credit bureaus your scores will jump 20+ points. You do not need to have the account deleted, just change the status of the account from charged off to paid, zero balance.