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Paying off Collections

Profile picture for DebtFreeDave
Real Estate Agent
Contributions: 1312
You don't have to pay off your collections if you want to buy a home. Fannie Mae has no restrictions on collections. There are guidelines to the amount of loan that you will be able to get. The maximum loan amount that you can get to 100% Loan to Value is $417,000. I have also been seeing loans being approved with fico scores below 620. This is even with the collection accounts. Your judgements and liens will have to be paid off however. With the current credit crunch it is hard to say how long these loans will be around. If you are thinking of buying, I wouldn't wait much longer. Guidelines for mortgage loans have been changing daily.
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October 03 2007 - US
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