GET A Texas MORTGAGE WITH COLLECTIONS? YES!!@
- Bad Credit Texas Mortgage Lender Programs– Case By Case situational approvals!
- FHA Bad Credit Texas Mortgage Lenders– Min 580 middle 3.5% Down min 550 With 10% Down.
- VA Bad Credit Texas Mortgage Lenders – Min 550 middle credit score with 100% financing.
- Texas Mortgage After Foreclosure – Short Sale – Bankruptcy- Foreclosure– Private Portfolio GA Bad Credit lenders.
- Bad Credit Teas Portfolio Lenders- Private Texas mortgage lenders that do not sell the loans.
- Hard Money Texas mortgage lenders- Hard money for case by case bad credit Georgia mortgage applications.
- No Credit Score Texas Mortgage– No Credit score Georgia with a bad credit past!
- Modular Home Bad Credit Texas Mortgage Lenders– Factory built bad credit modular home loans.
- Georgia Bad Credit Jumbo Mortgage lenders– Bad Credit GA jumbo mortgage lenders down to a 500 fico!
- Debt Consolidation Bad Refinance in Texas – Refinance to lower your total monthly obligations to provide financial relief..
I Have Unpaid Collection Debt on My Credit Report. Can I Still Get a Texas Mortgage? YES!!!
Just like you don’t need perfect credit to qualify for a Texas mortgage. And you don’t need to pay off all collection accounts to qualify!!!. OurTexas mortgage lenders don’t even count medical bill against you!! Credit card bills, collections, and charge-offs – you can have some or all of these and we can still qualify you for a Texas mortgage today!!
FREE CONSULTATION – WE WILL SHOW YOU HOW TO GET APPROVED FOR A TEXAS MORTGAGE WITH COLLECTIONS, PREVIOUS FORECLOSURE OR BANKRUPTCY!
Texas Mortgage Lenders After Bankruptcy – Foreclosure – Short Sale. Purchase 1 day after bankruptcy, foreclosure, short sale and deed in lieu of Texas foreclosure up to 2.5 million. These are not subprime loans, but they do often have higher interest rates, and higher closing costs.
Of course, it’s never quite that simple. To qualify for a Texas mortgage with collections It’s often a question of what kind of collection accounts are on your credit? How much are the collection accounts? And what type of lenders and loan types you’re considering?
Most Texas mortgage lenders can have different caps on collections and requirements for things like debt-to-income ratio and derogatory credit. Here’s a closer look at how your collection accounts can come into play during the Texas mortgage process.
Looking at Your Debt-to-Income Ratio
A big metric in the mortgage industry is your debt to income ratio. Texas mortgage lenders may calculate two different ratios. The first is the difference between your projected monthly housing costs and your gross monthly income and another that considers your total monthly debts and monthly payments reflected on your credit report. In the mortgage industry, we call these “front-end”= or housing expense and “back-end”= housing + all other monthly payments only on your credit report. Most Texas mortgage lenders really do not want to go over 50% of your gross monthly income for your housing plus all other monthly payments on your credit report.
All Texas mortgage lenders will pull in your major monthly payments/obligations from your credit reports, including things like car loans, student loan payments, car loans, credit card payments, the projected new mortgage payment. But now Texas mortgage lenders will also include unpaid collections over 2000 to your monthly payment. Any collections cumulatively over $2000 the lender will take .05% and add it back to your debt to income ratios. For example, if you added up all collection account and they total $3000 the lender would take 3000 in collections x.05= =$150 add to your monthly obligations increasing your debt to income ratios.
CONVENTIONAL = The max debt to income or back-end DTI ratio for a conventional purchase loan is 45%
FHA The max debt to income or back-end DTI ratio for an FHA purchase loan is 65%
Remember these kinds of figures represent a ceiling. If you have a lot of collections you might have a problem or max out your max Debt to income ratio. You will need an incredibly strong loan application in order to close with DTI ratios that high.
Dealing with Derogatory Credit Collection accounts
- How Much House Can You Afford?
If you have too many collection accounts you may be considered high risk for default. Lender look at to many collection accounts as a disregard for debt. Also, Texas mortgage Lenders may also have a cap on the total amount of collection accounts and derogatory credit you have. This is a blanket term that can include things like collection accounts, charge-offs, liens, and judgments.
Every lender has overlays to the number of accounts you can have in collections some allow up to $5,000 and other Texas mortgage lenders will allow $10,000 or more in collection accounts, these caps can vary by Texas mortgage lender. Some Texas mortgage lenders like us disregard medical accounts medical collections or bad accounts that borrowers are actively trying to repay.
Texas mortgage lenders don’t typically factor collections and charge-offs into your Debt to income ratio calculation unless you’re actively making payments on those accounts. In fact, some Texas mortgage lenders will essentially ignore a collection if you can show at least a 6-month timely payment history of on-time payments.
Charge-offs are debit accounts at least six months past due that creditors have for accounting purposes deemed unlikely to be paid. Some lenders will count charge-offs toward their bad credit cap, while others ignore them.
Much like with DTI ratio, Texas mortgage lenders may grant exceptions for derogatory credit if a mortgage applicant has solid compensating factors.
Tax liens and judgments will usually need to be paid in full to show a zero balance. Florid a mortgage applicants with a tax lien may still be able to move forward if there’s a repayment plan in place and at least 6 months of on-time payments history. Texas mortgage lenders will also count the monthly payments toward your DTI ratio.
High debt levels including judgments, large collections and tax liens and other financial troubles are all likely to perplex your Texas mortgage approval. Texas mortgage lenders will require additional bank reserves.
The other consideration is whether it really makes financial sense to stretch your debt burden even further with a Texas mortgage loan. To be sure, DTI ratio doesn’t tell the full picture when it comes to Texas mortgage affordability.
Make sure you’re putting yourself on solid financial footing regardless of what a Texas mortgage lender’s exceptions and guidelines allow.
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