applying with unpaid judgment

[micco59]

Should we apply for an FHA mtg with an unpaid judgment?  I know it will have to be paid but I'm afraid to toucyh it right now since I'm not sure how it will affect scores.  Is it the same as paying old collections?  We are using a large amount of gift equity (possibly 20% +) to purchase home, credit file is thin, scores are borderline around 650's mid score with no recent baddies in 2+years.  Time on job 10 years + and income about   Can this judgment be paid at closing with gift equity funds or should I pay try to settle it now before apping?  We can get a bump in scores by paying down 4 cc's which are 80% utilization and low limits right now. 

Should we wait to apply or just do it now? 

[JM-AM]

I would talk to LO or Broker before doing anything.

Since your UTIL is high paying it down will boost your scores if you need to. You may also need to pay it down because of your DTI, but let a LO or Broker go over it with you first.

[micco59]

Thanks, I will have to make that appointment.  I am just so nervous about it.