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Credit Frequently Asked Questions
Additional Questions
If a borrower is delinquent
on child support or birthing expenses but is on a repayment plan, can
this borrower qualify for a WHEDA Home mortgage loan? By state statute, the borrower is not allowed any arrearage on child support or birthing expenses, even if on a repayment plan. Your customer must be current with no arrearage to qualify for a WHEDA Home Loan. The borrower needs to eliminate
a revolving debt in order to qualify according to WHEDA's credit ratios.
Should I advise credit cards be paid off? We use the payment on revolving accounts when calculating ratios, whether or not the balance has been paid off, so paying off credit cards suddenly before applying for a WHEDA Home loan will not benefit the borrower. The borrower has always paid
for everything in cash. What can I do if he has no credit history? If the borrower does not have a traditional credit history, you can build an alternative credit history. Obtain payment records of items that are paid on a monthly basis, for example, rent verification; electric, gas, telephone, and cable TV bills; and car insurance (if paid on a monthly basis). What if the borrower has adverse
credit? If the borrower's credit report contains past credit problems, we look for credit recovery. Any non-medical collections, charged-off accounts and judgments must be paid in full and satisfied, and the borrower's credit report should show that credit has been handled responsibly for the last 12 months. Medical collections totalling in aggregate of $1500 or more require a repayment agreement. |
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