Video Transcript:
Most believe all collection debt is viewed equally by mortgage underwriters, a critical error. FHA guidelines create a structural firewall, separating financial mismanagement from life’s unavoidable circumstances. I am David Ghazaryan, and my function is exploiting these precise structural distinctions. FHA underwriting intentionally isolates specific debt types, creating pathways for me to engineer approvals. Here is the core FHA underwriting mechanism. With non-medical collections over $2,000, lenders must calculate a 5% monthly payment, crippling borrowing power. Medical debt is exempt. (Data may vary over time) The exemption has a critical flaw. If you arrange a medical payment plan, that payment is now included in your debt-to-income ratio, potentially triggering loan denial. Qualification, however, does not erase financial consequence. Lenders use older FICO models that penalize medical collections equally, lowering your score and directly increasing your interest rate. The complete structural analysis is in my article, linked below in the description. Follow my platforms for continued financial intelligence and see more strategic insights there.
Read Blog Here: https://www.iqratemortgages.com/blog/medical-debt-and-your-fha-loan-in-tampa--st-petersburg
