Can I buy a home if I have a collection account? By Cliffco Mortgage Bankers, Long Island, NY

Cliffco Mortgage Bankers, Long Island - Phone: 516-408-7300

Everyone knows having a collection account is a liability on a credit report. But how big is this liability when seeking to get a home loan approved? Cliffco Mortgage Bankers (https://CliffcoMortgage.com) brings you a simple but detailed answer with figures you can use as guidelines. In the final analysis, your credit approval will depend on many other factors.

Yes- If the credit application is strong overall a small collection account should not need to be addressed.

For "conventional loans" sought to finance 2- to 4-unit owner-occupied and 2nd-home properties, collections and non-mortgage charge-offs totaling more than $5,000 must be paid in full prior to or at closing.

For "FHA loans", the maximum aggregate balance of a collection account cannot exceed $2,000.

For investment properties, individual collection and non-mortgage charge-off accounts equal to or greater than $250, and accounts that total more than $1,000 must be paid in full prior to or at closing.

Additional comments:

There are multiple aspects which determine the creditworthiness of a person for a mortgage loan. It is relatively rare that all aspects of a credit profile are picture perfect. Our loan officers are here to advise you as to the best strategy to prepare your application for a mortgage loan. This is a personal conversation, and when you work with Cliffco Mortgage Bankers, you work one-on-one with a loan officer -- not some anonymous person shielded behind a 1-800 number who will never have any relationship with you like in big banks. Cliffco Mortgage bankers is a fully delegated mortgage banking institution. That means we originate and fund 100% of our loans. We will never pass your loan off to a third party (contrary to most big banks), and all credit decisions and underwriting are done in-house by our highly-educated loan professionals.

Contact Cliffco Mortgage Bankers to prepare your mortgage loan application the right way for success: 516-408-7300

Cliffco Mortgage Bankers is fully licensed in New York, New Jersey, Pennsylvania, Connecticut, Florida, and Texas. Our home office is in Uniondale, Long Island, NY. We cover all towns and hamlets of Long Island, as well other neighborhoods in NYC.

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