Tag: late payments

VA Derogatory Credit & Collections: I have a veteran with a low 623 credit score, collections and spotty history on other loans, which is why I have a refer/eligible. How will the underwriter handle the collections on a manual underwriting?

Answer: Your underwriter will be using the criteria below to evaluate your borrowers.  From the information you’ve provided, I’m not sure that they will be able to meet the requirements below.  In these situations, the underwriter decides if they can approve the loan, but it sounds like your underwriter will want to see a solid […]

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FHA – Disputed vs. Derogatory – Does FHA exclude Charge Offs and Collections that are outside of 24 months OR just the late payments outside of 24 months?

Answer: This isn’t the first time I’ve had this question, and FHA really needs to change the wording in their guidelines because it is quite confusing! Reference:  FHA Manual 4000.1 In the FHA Manual, they refer to accounts that are both DISPUTED and DEROGATORY.  I think a better way to word this would be: All Disputed Charge Off Accounts […]

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