Can I get a mortgage with collections on my credit?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Often yes. Medical collections are largely ignored by mortgage scoring, and many programs don't require you to pay off non-medical collections to close, though large balances may need to be addressed.
FHA is the most forgiving with collections. We'll review what's reporting, advise which accounts (if any) to resolve, and structure the file so collections don't block your approval.
Collections and your file
Collections do not automatically stop a loan. Medical collections are often ignored entirely. Other collections may or may not need to be paid before closing.
The loan type sets the rules. FHA and conventional treat collections differently. Picking the right program can save you from paying old debts up front.
Handling collections in Florida
Old collections spook many buyers more than they should. Often they are workable. We know which ones must be resolved and which can stay.
Bring your credit report. We will flag exactly what needs action before you apply, and what can wait.