     Mike | Wednesday, March 01, 2000 - 04:24 pm 
I have a defaulted student loan that has been repurchased by the government. It shows on my credit report in good standing. I also have another student loan for about $20k, but has never had a late payment. Will I be able to get an FHA mortgage for a house? I only have about $5k to put down now, but that 3% down payment looks so good. I've heard somewhere a while back that you can't get an FHA loan if you defaulted on a student loan. Is this true? |
| Steve | Thursday, March 02, 2000 - 04:40 am
Mike,
I got approved with the same situation.
I rehabed a previously defaulted student loan thru William D Ford program. My loan amount is around 138,000. My credit score is 554, I just needed to provide a letter of explanation. All the negetive items had 0 amount due except for 3 of them which I settled and paid about a week ago. |
| Anonymous | Thursday, March 02, 2000 - 06:24 am
Mike:
FHA's underwriting rules state that you are ineligible for a loan if you are CURRENTLY delinquent on any federal debt. Federally-guaranteed student loans count as "federal debts."
What this means is that you aren't eligible until you've brought the account current or made some satisfactory repayment arrrangements. It doesn't mean you'll automatically get approved, of course. But if the rest of your credit is satisfactory enough and your explanation makes some sense, you can be approved. |
