Villages of Apex

I Have A Repo on My Credit Report Can I Buy a House?

Villages of ApexI’ve had several of these questions lately, and I figured I’d let you know what I’m seeing.

Just because you have a repossession on your credit report does not mean that you have to delay in purchasing a home… but that doen’t mean it’s not a problem.

Okay, so let’s say you have a repossession from 2005.  Next year, 2013, the issue is going to “age” off of your account.  That means, no matter what the creditors are telling you, it’s going to go away – COMPLETELY away.  So, in most cases I don’t recommend that folks shell out $4000 to settle the deficiency balance this year (when it’s going to age off next year) because then it’s going to stay on your account for another 7 years! (To find out how long items stay on your credit report, click here!)

But, it might still be difficult getting a loan with that balance on there!  The critical things to consider are this:

  • How old is the repo?  If it’s less than 5 years old – you might need to make arrangements for payments.
  • What is your credit score?  Need 2 scores over 600 in most cases now!
  • Do you have other good credit?  You should have 3 good accounts!
  • Are there other collections?  If so, they likely need to be paid off before you apply for a mortgage loan.

Every credit report is like a snowflake… it’s different.  There’s no clear way that I can answer this question on a blog post – I’m just trying to let you know that it does not HAVE to keep you out of the mortgage market.

Bottom line – call us and let’s see if we can help you get on a path to purchasing a home!  Steve and Eleanor Thorne, Mortgage Loan Officers in Cary NC, 919-649-5058


  1. […] I use the NC First Time Home Buyer Program if I have a Repossession on my Credit Report?  It’s a difficult question to answer, but in general, if you have a large outstanding balance […]

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