Any chance with FHA?

[want_a_house]

I filed BK on 12/03...discharged 3/04. However, since that time I had a student loan awarded for a semester of grad school but had to withdraw due to surgery. It was a $2400 loan that was sent back and the university sent it to collections for repayment. I have paid that back, and it is now a paid collection (Aug 06). I have three unpaid collections that I can easily pay (if it will do any good to do so). Two are medical 125.00 and 73.00; one is 50.00--an unpaid balance from a disconnected service.

Where I had to repay the 2400 to the university before I could take classes again (in order to get the certification needed to keep my job), I borrowed from my 401K to pay the loan back. However, I had to pay monthly installments on my tuition in order to renew my certification so I could keep my job. Since the installments were greater than my student loan payments, I had no choice (due to financial difficulty) to miss payments during that time.

Of course, since then I was late yet again starting in Nov 07-Jan 08. I have paid my account up to date (more than 1000 dollars in one month since then and have paid more than the minimum loan payment from that point. I have made my payments on time and they are up to date on my student loan (paymenets madeFeb, Mar, and April 2008) consecutively.

I now have a savings account with my credit union, where 400 goes into that each month. My pay increase this year went from 39000 last year to 47500.

What are my chances, if any, do I have with FHA? Anyone?

[Flamingo]

The late payments after the BK will hurt you. One thing mortgagors look for after a BK discharge are payments on time. Reasoning as to why there are late payments doesn't help. What you should do over the next year is work on making payments on time to show you have stopped your late payment cycle and that will work to your advantage. It is tough now for anyone to get a mortgage, even with stellar credit. Mortgagors, even FHA, are being extremely picky. If you can wait, build up some savings and get a longer time period of not missing payments. That will work to your advantage and hopefully by the the market will pick up and be more lenient to people seeking mortgages who do not have stellar credit.

[want_a_house]

Thanks, flamingo.

I guess I should've also said that I want a house but maybe in a couple of years. Of course, I want a good down payment first. I plan on getting my payments back on track (which I have already started), and I guess I was really asking, "Is there anyway I can get past the late payments if I pay them on time every time for at least two years?" You answered that. Thanks.

[jal1129]

FHA requires no derogs for the previous 12 months and there is pretty much no exceptions.

[CindyLou]

FYI...medical collections do not have to be paid off for FHA loans

[CindyLou]

.....however, I would say at those small amounts...get them paid off and done now and it could help your score and overall picture.