Can I get a mortgage with a charge-off?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Often yes. A charge-off is a defaulted account the creditor wrote off, but it doesn't automatically block a mortgage. FHA is the most flexible, and underwriting focuses on your recent payment history.
Large charge-offs may need to be addressed, especially if they threaten the lender's lien position. We'll review what's reporting and structure the file so it can clear.
Charge-offs and approval
A charge-off is an old debt the lender wrote off. It does not automatically block a mortgage. Whether you must pay it depends on the loan type and the age of the debt.
Recent charge-offs draw more scrutiny than old ones. A clear explanation and clean recent credit help a lot.
Working through it in Florida
Charge-offs worry buyers, but many are manageable. We know which must be resolved and which can stay. That saves you from paying unnecessary debts.
Bring your credit report. We will map exactly what to address before you apply.