Posted on: 16th Mar, 2009 06:18 pm
MY SCORE IS 604 AND I AM TRYING TO GET APPROVED FOR A FHA OR A USDA LOAN HOW MANY POINTS ON A AVERAGE WILL MY SCORE INCREASE WHEN I PAY OFF MY 5,000 DOLLOR MEDICAL JUDGEMENT????
AND IS IT TRUE THAT MEDICAL COLLECTIONS REALLY DONT NEED TO PAYED OFF???
AND IS IT TRUE THAT MEDICAL COLLECTIONS REALLY DONT NEED TO PAYED OFF???
Your score will not increase if you pay off this judgment- however it would help you. Note: In order for FHA to insure your mortgage, you will need to have an acceptable 12 month payment history or the debt must be paid off. The guidelines says the debt can be subordinated but in todays market you are going to want to rid your self of any issues.
THANKS
exec, i want to piggyback on your comment. underwriters are far more conservative in this market than guidelines will generally require. in my opinion, it is far more likely to see that an underwriter's going to ask that all collections and charge offs be paid in full prior to or at closing, or else they simply won't approve the loan.
yes, we may see guidelines that allow us lots of things, but the reality of it is that we've seen extreme caution take over. many things are being done in underwriting that make it more difficult than ever to get a loan to closing.
it is definitely far better to be paid in full than to have old debts laying around. and, cindy mentioned it being a judgment. it's absolute that a judgment would need to be paid - i don't think there's an underwriter alive who'd allow that to be resubordinated.
yes, we may see guidelines that allow us lots of things, but the reality of it is that we've seen extreme caution take over. many things are being done in underwriting that make it more difficult than ever to get a loan to closing.
it is definitely far better to be paid in full than to have old debts laying around. and, cindy mentioned it being a judgment. it's absolute that a judgment would need to be paid - i don't think there's an underwriter alive who'd allow that to be resubordinated.
Underwriting licenses are just like your drivers license, if your loans dont perform, you get marks against your license and eventually it gets yanked and you lose your livelyhood. Underwriters arent taking that chance. So many files go “upstairs†to clear conditions. So the same with a lenders license to do FHA if you have high default rate from not educating the customer, they'll take my order at McDonald's Drive thru. Watch out for commission mongers and work with a company or person who takes pride in their lively-hood.
Underwriting licenses are just like your drivers license, if your loans dont perform, you get marks against your license and eventually it gets yanked and you lose your livelyhood. Underwriters arent taking that chance. So many files go “upstairs†to clear conditions. So the same with a lenders license to do FHA if you have high default rate from not educating the customer, they'll take my order at McDonald's Drive thru. Watch out for commission mongers and work with a company or person who takes pride in their lively-hood. I wasn`t logged in.
i am in agreement with the final statement. i'm not sure i can necessarily agree with the opening, though; and as for fha lenders, they are definitely monitored closely and clamps will come down if necessary.
SDFD