Reverse Mortgages Will Help 62 and Older Stay in Home Create Cash Flow

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While some collection agencies will agree not to report medical collection accounts that are paid off immediately, others refuse to do so. And some bill collectors will use the threat of credit report damage to try to get patients to pay up, even if the bill itself is disputed.


 

Here are some interesting myths and facts about medical collections! 


Myth: As long as I am making payments on a medical bill, it can't be sent to collections.

Fact: Making payments won't necessarily keep the bill out of collections. Even if you are making regular payments, they need to be a certain amount to prevent being turned over. Of, if you are under a payment arrangement but are late (even by just a few days) your bill may go to collections. If you leave any balance unpaid, there's a good chance it will go to collections.

 

Myth: When it comes to credit scoring, medical accounts are treated differently than other types of collections accounts.

Fact: The credit scoring formula does not distinguish between medical and non-medical collection accounts. All collection listings are derogatory and will affect your credit score the same way as other collections. Some creditors have been known to be more lenient when it comes to medical debt, even though the credit scoring formula will not.

 

Myth: I'll need to pay off medical collection accounts to improve my credit.

Fact: Paying your bills is the responsible thing to do, but don't do it expecting drastic changes to your credit score. Collection accounts damage your credit score, paid collections aren't as detrimental but they're still negative. The negative listing can stay on your credit file for up to 7 years.

Bottom line, if you want to be ready to buy a home or refinance, call me and I'll help you with credit, loan type and walk you through it.

Posted by Anne James on September 17th, 2021 5:19 PM
What Is the FHA 203K Program?

The FHA 203K loan program provides home buyers the opportunity to buy and fix up a property, without exhausting their personal savings.  Home buyers can purchase a property and include whatever costs to make required repairs or desired updates, or to fully renovate the property, all into one simple thirty-year fixed loan.   ALL work starts after, not during escrow, the purchase of the property, using the money set aside by the lender.
Image result for How much do you have to put down on a 203k loan?
To qualify for a 203k loanyou'll need to meet the same requirements as any other FHA loan: Your credit score must be at least 620 or 640, depending on the lender. Your maximum debt-to-income ratio can only be 41% to 45% You need a down payment (or home equity if you are refinancing) of 3.5% or more.
What are the drawbacks to an FHA 203k loan? For one, the interest rate is higher than an a simple FHA Purchase loan or refinance. Secondly, it takes some work; you must get bids on the repairs or renovations approved by the underwriter and the money is withheld and invoices submitted to escrow for payment. Also, there is a limit to the renovation loan amount-usually $35,000 up to 100%.
For more information, call Anne E James at 562-320-0510 or email annermsinc@gmail.com.


Posted by Anne James on July 30th, 2018 11:06 AM

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