A charge-off is a type of debt that has been written off by your lender. You missed the payments for days and now you’ve got a charge off. And it has shown up in your credit report, making you panicky. That is because it stays on your credit report for up to 7 years. It is especially true for anyone who wants to get on a property ladder. So can you get a mortgage with a charge off? Is there a possibility of getting a mortgage with this type of debt? That’s something we will find out in this post.

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A mortgage with a charge off

Your credit report is showing a charge-off – not a very pleasant sight! But fortunately enough, you can get a mortgage with a charge off. However, it is not that easy as it might seem.

Some lenders would have no problem accepting your mortgage application with a charge off. FHA loan is one of those lenient lenders which might approve your mortgage application. But that is, certainly, not always the case.

Besides, many other lenders would downright decline your mortgage application after taking into account your charge off. After all, they assess your credit score, based on which they accept the mortgage applications. With all this, they might require further explanation to learn why you couldn’t pay off the debt.

So what are the options?

Well, you either have to wait for the charge to vanish after 7 years or accept the paid charge off. With paid charge off, you will need to pay the debt and get it written off as paid charge off. And some lenders do accept this charge off. However, if you aren’t able to do so, it’s better to have patience and wait until you get rid of it.