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FHA and New Collections

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bshockley1981
New Contributor

FHA and New Collections

Hello all, I have reviewed many posts in the last couple years and I'll tell you what my deal is.....   I am planning on buying a home in January 2015.  I am in the process of selling my modular, paying off a few bills and banking the rest.  Today I received a collection for an account that has been sold 3 times.  My question is will this prohibit me from getting a FHA insured loan in January, even if I pay it off in the next month?  What if they don't accept a PFD or GW?  My score only dropped 12 points and putting me at a 598.  I have had no lates in the last 18 months and working on getting GW letters going for my old accounts, hoping I can bounce my score back up by January. 

 

Thanks in advance!

Message 1 of 2
1 REPLY 1
gdale6
Moderator Emeritus

Re: FHA and New Collections


@bshockley1981 wrote:

Hello all, I have reviewed many posts in the last couple years and I'll tell you what my deal is.....   I am planning on buying a home in January 2015.  I am in the process of selling my modular, paying off a few bills and banking the rest.  Today I received a collection for an account that has been sold 3 times.  My question is will this prohibit me from getting a FHA insured loan in January, even if I pay it off in the next month?  What if they don't accept a PFD or GW?  My score only dropped 12 points and putting me at a 598.  I have had no lates in the last 18 months and working on getting GW letters going for my old accounts, hoping I can bounce my score back up by January. 

 

Thanks in advance!


No it wont stop you explicitly though its possible it will drop your score below acceptable levels, If this is a new CA I would immediately DV them to see if you can get rid of them off your CRs, with 3 sales here they most likely cannot validate...

Message 2 of 2
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