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FHA, Overdraft Fees, Medical Collections

My hubby and I each have middle FICO scores of 620.  This is due to selling our leases and getting new cars 2 months ago.  We have medical collections on our credit.  Otherwise, all accounts have been current with no late payments since 2008.  I currently own another property (since 7/2004) and have NEVER had a late payment.  We have several overdraft fees on our statements.  10 of them occurred at one time while I was out of the States and unable to rectify the situation (occurred due to the doctor taking out money they shouldn't have and set off the imbalance).  Otherwise, the overdrafts that are here and there happened the day of or the day before pay-day.  I felt it was more important to have the payments on time and pay the bank fee than  to have late payments.  

I am afraid that our loan will be denied because of the overdraft fees and medical collections.  Otherwise, everything else is in order.  I am able to pay down some of the balances on revolving credit to hopefully increase our scores more.  

What are the chances?
  • July 18 2012 - US
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Answers (2)

Have your loan originator order a Verification of Deposits (VOD) instead of them submitting your bank statements to the Underwriter. VOD's do not show overdrafts.

Please feel free to contact me directly if you have any further questions, I'd be glad to help. 

All the best,
Ros

Roswell Moore, CMPS
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  • July 18 2012
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I have sent the Credit Union all the documents and the loan has been sent for the underwriter on the pre-approval..  I'm just stressing and I want to be reassured or something.  My husband didn't have a job for 5 months and all of our bills continued to be paid on time, but I am having to worry that the loan won't be approved because I didn't pay the medical collections (they didn't charge interest and so I paid the other bills first... and they wouldn't work with me on payment arrangements before collections) and we have had those overdraft fees.  Am I crazy for worrying?  
  • July 22 2012
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