1-954-667-9110

Collections-Judgements

COLLECTIONS- FHA Mortgage applicants are not required to pay off all collection accounts. However, outstanding collections will reflect on your credit worthiness overall and may be held against you. In this case, one or more of the collections may need to be paid off in order to improve your credit score and show your willingness to pay debts.

Does FHA require collections to be paid off for a FHA mortgage applicant to be eligible for FHA mortgage approval?

JUDGMENTS- Court-ordered judgments must be paid off in order for an application to be eligible for an FHA mortgage which is a requirement of an FHA loan. Occasionally, a FHA mortgage lenders may accept documentation that shows you have agreed to pay and have paid at least 6 months on a repayment plan towards the judgment, instead of requiring you to pay the full amount off beforehand.

FHA mortgage lenders will evaluate collections and judgments on a case-by-case basis. In both instances (collections or judgments) the FHA mortgage will have to explain the circumstances of the negative in writing.

About Us

We are US Mortgage Lenders. Major real estate brokerages regularly entrust their clients to our team due to our reputation for transparency, delivering on time, customer satisfaction and loyalty. With five-star customer reviews on Zillow.com and counting, you’re assured of having the backing of an experienced team.

zillow-lenders

Show Buttons
Hide Buttons