Could We Get a Mortgage with These Problems

Updated on August 31, 2009
J.G. asks from Carrollton, TX
22 answers

We are looking into buying a house now that we have the income to do so but my husband had a little problem with his student loan. When he first graduated from law school he could not find a job only unpaid internships. As a result he could not pay his student loan and the lender would not forebear or defer the loan any longer or work with him to lower the payments. His student loan was not a government loan it was through a private student loan lender. As a result the loan was sent to collections but I do not think it is in default. We have been paying the collection company for the last year and a half. Can anyone tell me if it is possible to get a mortgage loan even with this problem? It is the only negative thing on his credit report and the only debt we have but it is a $150,000 loan. We just want to get an idea before we actually try to go through the whole process. Thanks so much

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Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

J.P.

answers from Dallas on

It's important to find a reliable, honest mortgage consultant so you will be well advised. I highly recommend Michael Busker ###-###-####. He offers years of experience in the business along and the knowledge to properly advise his clients. I know him professionally.
regards,
J. P

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

K.S.

answers from Dallas on

Failing to repay a federal student loan can knock you out of a bunch of stuff. For example, I could lose my Texas real estate license for defaulting on a student loan.

Something doesn't sound right about the scenario you are explain. I had two loans that were consolidated and I've never had problem getting a forebearance or deferral on my loan. You or he may want to investigate the situation more and see what options may be available.

I know my brother had problems with his student loan when he graduated from law school in the early 1980's. I think his problem arose because of having several loans which were unconsolidated.

The best way to tell if you can buy a house is to talk with a mortgage lender.

More Answers

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M.R.

answers from Dallas on

J., I have a good friend who can answer your questions. Her name is Katie Watson with Wommack Mortgage. Her number is ###-###-#### and that's her cell phone. She can answer your questions and if you need can help you get a loan. Also, if you're a first time home buyer, now's the time. Not only is it a buyer's market, but if this is the first home you have purchased or if it's been more than three years since you owned a home, the government is giving you $8,000 that you do not have to pay back. Can't beat that. Katie can give you the details. You will like Katie, she's not pushy and will be more than happy to help!
M. Rowe
James Rowe Plumbing
###-###-####

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

S.M.

answers from Dallas on

Hi J.,

Call Nicole at Element Funding. Her number is ###-###-####. She can answer any of your questions before startign the whole process. Element Funding is a group of fantastic people who have incredible experience in mortgages that was formed for to help in this economic time.

Good Luck!
S. M
The Cerebellum Center
www.cerebellumcenter.com

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

E.H.

answers from Dallas on

I have a great mortgage person that would definitely talk to you and see what she can do to help! her name is Pat Nagler and her email is [email protected]____.com I can get you her phone number too but I am at home and it is at work! Email me at [email protected]____.com or call my office a t ###-###-#### and I will be happy to get it for you!

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

J.M.

answers from Dallas on

You do need to check your credit score, but know that it can be fixed. We had an issue with a few things on my hubby's credit, and I had excellent credit. After a few months of paying bills and ensuring that everything on the credit report had been addressed, his credit score went way off. Now, we did not pay off everything, but made sure everything was current. I don't want you to think that you need to pay off the student loan. If you have been current for that long, you are probably fine. Good luck!!!!

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

K.C.

answers from Dallas on

You can probably get a loan, but you might want to consider paying off the debt you already have first and then save up a good down payment on a house. My husband and I had some student loans and a little bit of cc when we bought our house. It was a big mistake. Paying interest on debt is such a waste of money - even more than paying rent. In addition, you will probably have lots of other expenses once you buy the house. Stuff that you can't even think about in advance. If you wait, then you can probably get a better house and have more peace of mind for the process.

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

C.M.

answers from Dallas on

I am a licensed mortgage broker for over 10 yrs. You will likely NOT be able to get government (FHA/VA) financing with this as an issue. Once you've stiffed the government, they're not pleased with you. Conventional will be the way to go if you have cash for down payment and credit scores over 620 (but preferably over 700).

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

R.F.

answers from Dallas on

The bigger issues to be concerned baout are your score and your payment history. As long as nothing is in default you may be ok. Just give someone a call and find out. We have been talking to an independant company that works out all the loan stuff instead of going directly to a bank and we can usually get pretty wuick answers about anything financial.

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H.T.

answers from Dallas on

Call Kevin at ###-###-#### ext 174 he can help you. I see you got some other refererals as well. Your best bet will be to call them all or at least a few to see who offers the best deal and lowest closing costs. Plus he has dealt with this before so he is definitely knowledgable of the best way to work around this.... My sister graduated Law School in Co. at DU and he had to help her with this same problem. Does your husband have a job yet? I know several attorney's in the area. What kind of Law is he wanting to practice?

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

T.S.

answers from Dallas on

Student loans and medical bills should not negatively affect your possibility of getting a mortgage loan.

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

T.O.

answers from Dallas on

It's all based on score. The only way to know is find out your credit score. It depends if you have other credit and if you have been paying anything else on time and for how long. Good luck.

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

C.S.

answers from Dallas on

Credit report.com. If it shows up on your credit wouldn't you have to clear it off before you get a loan? A clear report could determine your POINTS and decide your interest rate. Could make a huge difference. Is his loan exceedingly high? If not, use the down payment to pay off the loan instead of buying a house. Things are crazy with economy right now anyway.

Good luck!

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

T.W.

answers from Dallas on

J.,
I think you can still get a mortgage if your credit scores are fair and with proof of payments to the collection company. My husband is a Mortgage Broker and he can tell you better than I can. Give him a call. Charles W. ###-###-####
Metropolis Lending

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

S.F.

answers from Dallas on

J.,
As other have suggested the best source for the answers to your questions is a mortgage specialist. I have one that will talk with you and advise you for no charge. Her name is Carolyn Cantrell ###-###-####. She is a mom of 2 teen boys and is super sweet! Tell her S. F. sent you when you call. She will run a credit check for free and get you a pre-approval letter or if you need to do a few things to get all on track she will refer you to a partner of hers that can help with that.

After that then you can start the looking. My husband & I are experts at helping first time home buyers. We have a free buyer's guide I would love to send you. Just send me an email with your contact info or call me at ###-###-####. We love helping people buy & sell homes!

Gook luck to you.
S. F.
F. Team Realtors
RE/MAX Four Corners

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

N.H.

answers from Dallas on

Get a copy of you credit report. Your numbers need to be high 600's soem lenders can work with mid 600's. Talk to a trusted lender/bank but do not give out your ss# for them to run your credit report until you have found a lender/bank you think you may actually use. Too many hits for pulling your credit report also shows as a negative. There is money out there to lend but the process is a lot slower and there are a lot more hoops to go thru. Dont get discouraged if it takes awhile...and i mean a month or more. The lenders have to have tons more 'junk' from you upfront and it seem insane but just part of process now.

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

H.F.

answers from Dallas on

Your best bet would be to get a pre-approval for a loan. That will also allow you to know what price range to be looking in. I know a reliable buyers realtor. Private messaage me, if you are interested.

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

J.M.

answers from Dallas on

I am a real estate agent, and my suggestion would be to talk to a mortgage professional. You can do this over the phone with just a few answers to their questions. They can run your credit and then advise you as to what your next step would be. You may have to pay a higher interest rate to get a loan, but you could refinance after a few years to reduce your interest rate. Good Luck!

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

K.P.

answers from Dallas on

More than likely, if they see you have been paying on this for a year and a half they will take that into account. The best way to find out if you can get a loan is to go try to get pre-qualified. Most realtors will not take you looking without that anyway. If you don't pre-qualify, then they will tell you what needs to happen in order to get qualified. If that is the only black mark on his credit report then you should be ok though. Be careful though to NOT get a variable rate loan, and if the fixed rate is too high for your tastes then wait just a little longer, keep paying on the loans and that will bring the interest rate on the loan down. Good Luck! Don't take on more than you can afford!

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

T.C.

answers from Dallas on

You shouldn't have to go through the whole process, just contact a local lender and tell them your issue. They will pull your credit and tell you if it's on there or not. The lenders I use can usually tell my clients within a very short time if they will be able to qualify for a loan. Debt to income ratio is real important too.

If you want a recommendation of a lender, just give me a call, and I'd be happy to give you some of the lenders I use for my clients.

Blessings,
T. Camp
DFW Texas Homes
http://www.dfwhomesrealty.com

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

C.R.

answers from Dallas on

Hi J.,

I think you might be surprised on what you can get approved for if you have the income.

Call Marc Star the owner of Integrity First Home Loans at ###-###-#### to see about a pre-approval.

If you can't get approved at this time, I have a great attorney I work with for credit restoration. He will be able to help you with your credit in just a few months time.

Best Wishes,

C. Roeschen
The Trinity Group
Keller Williams
###-###-####
[email protected]____.com
www.TheTrinityGroup.org

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

J.M.

answers from Dallas on

J.,

My husband has worked in the mortgage industry for 17 years and also helps clients repair credit if their credit is not up to par. He is a loan officer with Hunter Financial Group and would love to speak with you about any questions you may have. Please feel free to contact him and let him know his wife referred you to him. His name is Michael Browne and his number is ###-###-#### ext 211. He works mon-thur 9-7pm and fri 9-4pm. I am sure he could help.

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