Profile picture for user3371703

advice on FHA credit explanations please?

I am currently awaiting approval on my FHA loan, and I am writing a few explanations regarding past student loan derogatories that occurred back in 06/07.  At that time, I admit that I was immature and irresponsible with my credit.  After receiving collection calls and letters, I began to work on them and they are all paid, but I still have to explain them and FHA says they have to be reasonable explanations.  I have a 715 median score, the appraisal came back higher than the purchase price, my income is good, and I have no lates on anything in 2.5 years.  Any advice on how to explain these since they weren't due to a job loss or medical bills, they were because I was careless with my credit at that time?  Any advice is greatly appreciated....
  • October 23 2012 - New York
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Answers (4)

Profile picture for wreynol4
No problem that's what were here to do!
  • October 23 2012
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Profile picture for user3371703
Wow thank you for the great feedback.  In your experience, have these "answers" yielded a credit approval to people in the past with a situation similar to mine? 
  • October 23 2012
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Profile picture for Cindy Quinton
Based on my experiences and what I have read,  keep it simple and explain that you were immature with money at that time. But also state that you no longer make those mistakes, and ways you make sure things are paid on time (bills before unneeded spending, auto-draft payments, careful budgeting, things like that).They want to hear what you are doing differently to make sure it doesn't happen again.
  • October 23 2012
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Explain just that........
  • October 23 2012
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