+1 vote
asked in FHA Loans by
I am I  the process of buying a home.  I have a collection charge off that my mortgage broker says I need to settle but I don't have the $ to settle it. Its an old charge off and I'm not sure its necessary to pay off at this time. Are there other options available where I can avoid this I have read it not necessary for a mortgage to be approve (wife and I have currently a 650 credit score, buying a house for 325,00 from a family member who has agreed to a gift of equity where the house is valued at 475,000.) and even if I do pay off the collection and it shows paid It doesn't effect my credit rating in a positive way. Please advise, and if you can get me a mortgage without all of this I will go with you.
Thanks!

2 Answers

+1 vote
answered by
Thank you for reaching out to me and my Team.  We are direct lenders with no overlays on government and conventional loans.  Charged off accounts and collections accounts do not have to be paid to qualify for FHA loans with us. Do not pay them. What state are you buying a home and what is your number and best time to call you shortly.  Looking forward to working with you and your family. 
+1 vote
answered by
GOOD NEWS...YOU DON'T HAVE TO PAY OFF CHARGE OFF.  MOST LENDERS WILL REQUIRE YOU TO PAY THAT OFF OR HIT YOU FOR 5% OF THE PAYMENT.  THESE ARE OVERLAYS TO FHA GUIDELINES.  FHA STATES THAT MEDICAL COLLECTIONS AND CHARGE OFFS DO NOT COUNT AGAINST BORROWER.

YOU ARE CURRENTLY READY TO PURCHASE.  CALL ME ASAP AT 630-915-7550

ALEX CARLUCCI
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