Posted on: 26th Jan, 2010 05:31 pm
i currently own my home. last year my second mortgage went through the modification process and due to a clerical error it got charged off. i am making monthly payments on it. i had a lot of late payments over the last two years. my income has substantially increased and for about 6 months everything has been current. i want to sell my home which has enough equity to pay off the "second" mortgage upon sale. i also do have money for a down payment. what are the chances of obtaining a new mortgage with the recent charge off? i don't have my credit score, just recently ordered a copy.
Hi rschigur,
With a recent charge off, it would be difficult or you to qualify for a FHA loan. However, if you have a good credit score, then you can qualify for a conventional loan. In order to get a conventional loan, you would require a credit score of 700-720. To qualify for a FHA loan, you would require a credit score of 620 but there shouldn't be any negative items on your credit report. Moreover, getting a loan would also depend upon your income as well as your debt to income ratio.
Thanks
With a recent charge off, it would be difficult or you to qualify for a FHA loan. However, if you have a good credit score, then you can qualify for a conventional loan. In order to get a conventional loan, you would require a credit score of 700-720. To qualify for a FHA loan, you would require a credit score of 620 but there shouldn't be any negative items on your credit report. Moreover, getting a loan would also depend upon your income as well as your debt to income ratio.
Thanks
apparently, the charge off will be paid in full when you sell. that won't remove the negative information from the credit report, but it will soften the blow a bit.
i have to agree with james that it'll take some time to cure the result of that charge off on your credit report and boost your score to the point that you'll be able to acquire a new mortgage loan.
i have to agree with james that it'll take some time to cure the result of that charge off on your credit report and boost your score to the point that you'll be able to acquire a new mortgage loan.
