February 17, 2015
A reader asks, “I co signed a student loan in 2004 and the student loan went delinquent on February 2008. When will it come off my credit report? And will I be able to apply for a fha loan after it comes off?”
To get the answer about when a student loan delinquency might come off a credit report, the reader will need to contact the credit reporting agencies to see what standards may apply. There are three major credit reporting agencies and a potential borrower would need to contact all three. The agencies are Equifax, Experian, and TransUnion.
If the borrower’s credit rating is sufficient, and the derogatory credit information no longer shows up on the credit report, it’s entirely possible that the borrower might be able to successfully apply for an FHA home loan. Much would depend on the borrower’s credit history following the delinquent loan, FICO scores, and other concerns.
Borrowers who find themselves in situations such as these may wish to contact the FHA directly by calling them at their toll-free number: 1-800 CALL FHA. Contact the FHA to request a referral to a HUD-approved housing counselor in your local area. A housing counselor can help a potential FHA borrower with information and advice about preparing for a new FHA loan application, preparing credit and debt-to-income ratios, etc.
Borrowers cannot go wrong with pre-purchase housing counseling. FHA loan rules state that credit information is one of the most important aspects of the application–the lender uses credit information to determine whether the applicant is a good credit risk, so getting your financial affairs in order before applying is a very good idea.
Do you have questions about FHA home loans? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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