Could i still get a first time buyers mortgage loan?

I have like 9 things on my credit report 4 that are payed off but still on there and 2 others come off next month and all these collection accounts are from like 2-7 years ago? It adds up to about $3,000 In DEBT. I have a peice of property i own out right i paid off 2 yrs ago, and it has a drilled well on it, i was thinking maybe equity? please help with any advice before i go apply!

Answer:
Typically mortgage lenders are more interested in your debt to equity ratio. That being said, just because you have $3000 in debt doesn't mean you won't get a loan. They are more concerned with your ability to pay the loan back (i.e. by your credit history) than how much you owe if it's not excessive). Also, according to the IRS, you qualify as a first time homebuyer as long as you have not been the primary homeowner for the previous 2 years. Definitely take care of the credit report errors. Usually if you dispute them twice they will REALLY investigate and usually take them off. Talk to a credit counselor (if you have time) before you apply too - they can tell you the best way to fix your credit report and the most important factors in mortgage loan decisions. Hope this helps.
If you've never had a mortgage, FHA is a one-shot deal. Otherwise, you'll probably have to pay off those debts to get a loan.

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