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Heather Arnder
a year ago
If you have a payment plan set up for a credit card judgment can you get approved for a FHA loan or do you have to pay it off in full?
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Joe Wallace
a year ago
Lender standards may apply, but FHA loan rules in HUD 4000.1 state: "A Judgment is considered resolved if the Borrower has entered into a valid agreement with the creditor to make regular payments on the debt, the Borrower has made timely payments for at least three months of scheduled payments and the Judgment will not supersede the FHA-insured mortgage lien.

The Borrower cannot prepay scheduled payments in order to meet the required minimum of three months of payments. The Mortgagee must include the payment amount in the agreement in the Borrower’s monthly liabilities and debt. The Mortgagee must obtain a copy of the agreement and evidence that payments were made on time in accordance with the agreement."

That's found in HUD 4000.1 page 174.
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