Bad credit mortgage loan FHA /?

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for Hi, I’m answers to one simple question ….. Is it possible for a mortgage / FHA loan with bad / poor credit to get? I read all kinds of forums and blogs about it and I’m not really achieve anything. The thing is most of my credit problems are going past 2 years or more. Should I pay or let them be? I read that when some things are old in your report for 2 years, you should not pay because they update it and makes me worse. Is this true? I have no idea. The house I’m looking right now that $ 40,000, and I’m almost $ 24 000 per year gross and I did a lot for a down payment. Should I set all my information and an FHA loan application and press your thumb? Almost what I ask, there are companies / donors who do not really punish bad credit, as you can prove you are the loan?

  1. Reply
    January 21, 2011 at 9:51 pm

    Most lenders will require you to pay off past collections and Judgments in order to qualify for the loan. Why shouldn’t you be denied credit if you have credit out there that you have not paid off?

  2. Reply
    January 21, 2011 at 10:49 pm

    You need at least a 620 FICO score to get a FHA loan. Mortgage lenders will require you to settle all outstanding derogatory items before approving you for a loan.

    You first need to start negotiating settlements on those outstanding debts. You should be able to settle for 25% to 50% in a lump sum, depending on how old the debt. Forget about payment plans. You are better to save up till you have a lump sum offer. Start with the newest derogatory item and work back to the oldest — settle them one at a time.

    Get any settlement agreement in writing before you pay a cent. Keep that agreement along with your payment proof, forever. Do not give the collector direct access to your bank account.

    You may run into problems finding a $ 40K mortgage. Anything under $ 50K is considered subprime and subprime mortgages are very hard to come by. There are other things that you will need to qualify for a mortgage, besides the score and clean credit report — minimum 2 years stable work history, sufficient income, low debt to income ratio, downpayment and closing costs.

    You may want to work on cleaning up your credit report now and wait a couple years to build more good payment history and a better score before applying for a mortgage.

  3. Reply
    January 21, 2011 at 11:21 pm

    If you have enough To put down 10%, then (as of Oct 2010 change) your credit score can be as low as 500. FHA does have issue with open collections, liens, judgments…(must be paid off before they will approve), FHA requires your past year’s history to be clean (no more than 1 30 day delinq on revolving debt, absolutely none on your current mortgage or rental in past 12 months).

    Your biggest problem is that lenders are now requiring higher scores than FHA and most of the banks will not do an FHA if you don’t have a 640. You may be better off since you intend to make a large down pmt to look at the /non-conforming market.

  4. Reply
    My Take on It
    January 22, 2011 at 12:04 am

    There are no *bad credit mortgage loans* anymore. You will be told by the lender to go fix your credit get your score up between 620 and 640, save a down payment and then come back and talk to them.

    And, whoever told you that not paying off those debts that are 2 years old was wrong. Those debts are still probably within the SOL to sue you.

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