What if a candidate’s credit report reflects outstanding debt?
Any debts or loans that are current and being paid on time will be evaluated in the applicant’s debt-to-income ratio. If the credit report shows collections, judgments, or charged-off accounts, the applicant will need the capacity to settle these within about 6-9 months (before they would close on the home). We may refer candidates to credit counseling services to assist them with specific items on their credit report.
