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Can you get an FHA loan approved with collections on credit report?

Can you get an FHA loan approved with collections on credit report?

I want to buy a house using an FHA loan. My credit shows loan payments for the past two years have been current and on time. However, while attending college, I had two judgements placed against me.

Chapter 13 was not an option because I was told I would not be able to continue to receive the student loans needed to complete my education. I satisfied one judgment and I am in the process of making a debt settlement agreement with the second one.

My credit score is 652 most likely due to the unsatisfied judgement. I have been at my current job for two years in May of this year. That is when I would like to start looking.

I have no credit cards. Should I apply for one before shopping for a mortgage or wait. I did not want my score to be dinged due to a credit inquiry?

Will be able to get an FHA loan?

—Chris

Because your last collection account on your credit report is a judgment, you will want to be sure the court record gets updated that the account has been resolved. Does the other judgment you settled no show as satisfied on your credit reports?

Getting an FHA Loan with Collections on Your Credit Report

The home loan markets have changed in recent years. The housing boom bust and record foreclosures created an environment that tightened mortgage lending. And as of January 2014, most home buyers will want to be sure they meet the CFPB’s new ability to repay rules before you start shopping for a home loan. While this is not so much directed at you, it is good ground to cover for other readers:

1. Calculate your monthly income and expenses. Include all of your normal recurring bills (rent, car loan, credit cards, student loans, utility bills). In order to set yourself up for the best odds of getting approved for the loan, you want to have a DTI (debt to income ratio) of under 43%. This means your normal monthly recurring bills add up to less than 43% of your monthly income. Any legitimate outstanding debt collection accounts that show on your credit report are goingto skew your DTI and work against you.

Some banks will approve a loan if your DTI is higher than 43%, but it will depend on other assets you may have, and other outliers.

2. Credit score requirements from the FHA are about as forgiving as can be found. But the score you need depends on the loan you are applying for. At the time I am answering this, the FHA says you will not qualify with a credit score under 500. Credit scores between 500 and 579 can mean only 90% loan to value loans, and a credit score of 580 or higher is a good baseline floor for most borrowers.

Is 652 your middle credit score?

3. Collections and judgments on your credit report may need to be paid or settled. The debt to income ratio concern is addressed when collection accounts are resolved, but there are instances (more recently than I ever recall), where even if your DTI is well within what is considered healthy, your loan officer will indicate collection items on your credit reports are holding back loan approval. And this is certainly more likely with an unpaid judgment on the credit report.

Is it possible to get an FHA loan approval with collections still on your credit report?
FHA, federal housing administration symbol. Wooden block with word \’FHA, federal housing administration\’ near miniature houses. Beautiful white background, copy space. Business and FHA concept.

You are settling the remaining judgment now, so be sure the court record is updated to show the judgment is satisfied before May.

How much credit diversity do you need for a mortgage loan?

I went into the above details so that later readers can get a grip on the issues that you seem to already have. And I am happy you have a realistic time frame and expectations (some people learn of collections on their credit report holding them back only after applying for a loan, and hope to still close in a matter of weeks). Your other question about applying for credit cards is more about diversity of credit.

Having established revolving consumer credit, like credit cards, is a small part of a healthy credit profile. Two such accounts are a normal part of a consumer credit profile, and are said to help enhance your credit scores (with all other credit score health benefits being observed).

Will the FHA loan you are looking at be more likely to be approved if you have more credit diversity with one or more new credit cards established? I do not think so. And you do run the risk of lowering your credit score for a few months as a result of new inquiries and accounts, even if only slightly.

It does not sound like you have connected with a mortgage lender or loan officer yet. I would encourage you to locate one you like and start the dialogue about your loan options in preparation for applying a few months from now. With the newness of the CFPB qualified mortgage rules, and ability to repay measures, there may be some minor things your lender/loan officer can help you get a head start on.

Anyone trying to resolve collection accounts on your credit reports in order to achieve credit goals, like a new home loan, is welcome to post about your situation  in the comments below for feedback.

Filed Under: credit reports, debt collection, Debt Questions

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About Michael Bovee


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Michael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.

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Comments

  1. Dominique Russell says

    February 18, 2021 at 7:27 am

    Hi Michael – I have had clean credit history for the past two+ years. The two+ years prior were pretty bad. The question is…can we successfully get approved for an FHA loan…with near perfect two year credit performance, plenty of income, plenty of DTI room (35% AFTER the house we’re under contract for), middle low score of 670, plenty of money for closing, and (new construction time) a commitment to having 2-3+ months of the new mortgage payment saved at closing (with documented proof of consistent savings to support that)…DESPITE an absolutely terrible credit performance 3-5 years ago (2016 – 2018)? More details below:

    The recent two years, no lates, utilization hovers around 3-6%, no new accounts, no closed accounts, no inquiries, etc. My middle score is about 670/675. The DTI with the house we just went under contract for puts our TOTAL DTI AFTER the house at 35%. My fiancée and I both paid off our cars last year and decided against getting new ones (I was rear ended and lost mine, totaled) for now, and our credit card payments are all at the minimum. So in short, our RECENT profile of 24+ months is almost as good as it could get?

    The issue is my (just me) 2016-2018 profile…I had a charge off (went into C/O status in April 2018, paid off February 2019), a collection (went into collections April 2016, starting paying immediately, paid off in full February 2019), a credit card that went 120+ days TWICE in 2018 (basically made two payments on the card in all of 2018 :(…the card has been paid on time and current for 2019 and 2020 so 24+ months at this point)..and then about 6 total other 30 day late payments spread across 2016-2018 (my car, 2 other credit cards…most if not all of them 2016/2017).

    2016-2018 was a struggle for me as I was fresh out of school, moved twice, took out loans and ran up credit cards to fund those moves, went through salary cuts etc. I finally landed a solid job in 2019 and took all those lumps and came up with strategies to get out of trouble and stay out. My last data point I’ll add is that at my worst I was around 530 FICO. Today my 3 are about 680 675 and 670.

    I really just want to know how underwriters will view me. Am I the model citizen for recovery, or am I still a disgrace to the entire credit and lending race?

    Reply
    • Michael Bovee says

      February 18, 2021 at 7:55 am

      Everything you pointed out that went wrong is not longer an issue.
      Those resolved collections should not prevent an FHA loan (or most conventional for that matter).
      Good luck!

      Reply
  2. MaryAnn Torrelli says

    October 20, 2020 at 8:12 am

    Hi Michael…..i was all ready to send in my paperwork for a first time homeowner grant with the Town of Brookhaven in Suffolk county NY when i learned yesterday that you can’t have any collections on your credit report. Needless to say i am very disappointed. I also have one late payment to capital one from Dec. 2019. I called to try and settle this collection it is for $3823. but the lowest they will go is $2686. If i pay this i won’t have the $3000 i need for the home owner grant. Should i just pay the collection company this money and then just keep saving and try in about 5-6 months for an FHA mortgage…my scores right now are 604 transunion, 578 experian and 598 equifax. The deadline is November 30 2020 for the grant….i would really appreciate your input

    Reply
    • Michael Bovee says

      October 21, 2020 at 6:23 am

      When did you stop paying in the collection account?
      Who has it now if not the original creditor?

      Reply
  3. Amanda S. says

    June 24, 2020 at 9:23 am

    HI there! We are just about to start the pre approval process for a standard home loan. Our credit score was just over 700 when Spectrum MISTAKENLY reported $150 balance to our credit reports. We have gotten them to admit it is their mistake and we are trying to get a letter. We talked a few different loan officers over the past week. One said we absolutely need to go on to all 3 bureaus and dispute this Spectrum charge. The second one said to absolutely NOT add disputes because the lender will only ask that they be removed (my understanding is it takes that account out of the scoring model and why would a lender want an inaccurate report). The second one seems to make logical sense. What are your thoughts?

    Reply
    • Michael Bovee says

      June 25, 2020 at 7:36 am

      I have seen many a lender ask for disputes to be removed from reports before loan approval.
      I would work with the business furnishing the bad information to the credit bureaus to remove it quickly. Their letter can be used by your mortgage broker to do a rapid re-score.

      Reply
      • Amanda L Santos says

        June 25, 2020 at 8:42 am

        Thank you so much for your response. Good, that was our thought and that was the opinion we went with. We should have pre approval in hand later today! Spectrum did admit their mistake and guess what, it’s already been removed from one bureau! It brought my husbands score up 35 points! That was just 5 days after we talked to them so we are thinking this is a good sign. We may have to do a rescore but that’s okay!

        Reply
  4. Monique Rios says

    May 26, 2020 at 2:54 pm

    I am currently looking to purchase a home soon and have started the process with a lender. My student loan is no longer showing on my credit history as it has been way over 7 years and my current credit score is 631. My student loan is currently in collections and my lender said in order to be approved for an FHA loan I would have to either pay the US Department of Education in Full which my current balance is $15,600 with fees and cost and my principle balance is $11,680 or call the US Department of Education and set up a payment plan and ask if they would send me a letter that a payment plan has been started. My question is, if I set-up a payment plan on the large amount, will I be able to get approved for an FHA loan? What should I do?

    Reply
    • Michael Bovee says

      May 28, 2020 at 2:18 pm

      Yes, that is pretty common to see happen when you have a government debt you have not paid, and are asking a government agency for something, they can and do require a resolution to that old debt.
      FHA regularly approves mortgages after you follow through with what they are asking you to do.

      Reply
  5. Stephanie says

    April 22, 2020 at 5:36 pm

    Hello Bovee,

    I am currently looking to purchase a home soon and have been trying to clean up my credit to get approved. I have paid off most of my 10 collection/charge off accounts with the exception of two, one that I am trying to settle for less than the balance (current balance $3,812) but unable to get in contact with the company to try and settle and the other is a balance of $19,757.00 from a car accident in Dec 2018. My question is, if I set-up a payment plan on the large amount, will I be able to get approved for an FHA loan? Also, will paying the other 8 accounts off raise my credit score once the balances have been updated (disputed with the 3 credit bureaus to have creditors update)? My current Vantage scores are Experian 587, Equifax 584 and Transunion 595. My Experian FICO score is 616.

    One more question, I do have an old apt balance of about $5,700 that is not showing on my credit report but was seen when applying for an apartment, do you think that will show up when applying for a mortgage?

    Thank you

    Reply
    • Michael Bovee says

      April 25, 2020 at 9:59 am

      You can often still get an FHA loan if you show you have been making regular payments on past collections that are part of a payment agreement (90 days of payments already made is preferred).
      Who is the collection agency or creditor you cannot reach?
      I would be prepared for that past apartment debt to be seen if it were me.

      Reply
      • Stephanie says

        April 25, 2020 at 10:51 am

        I cannot reach Acceptance Now, it’s company that’s partnered with diff furniture companies to offer financing. I tried calling them but can’t get anyone to help with settling the account. I have disputed the account due to that and the account was established in Oct 2013, last payment was 5/2014. Not sure what else I should do about this, do you have suggestions? I’m also working with a credit repair company called Credit Saint, any suggestions on that? Do they really help with credit repairs or can I do this all on my own? I really want to try and get approved this year hopefully soon.

        Thank you for taking the time out to respond to my questions.

        Reply
        • Michael Bovee says

          April 28, 2020 at 7:28 am

          I generally see credit repair companies that send canned letters as unnecessary. It is something most of us can do on our own, and using dispute letters available from the CFPB: https://www.consumerfinance.gov/blog/debtcollection/
          Is there anyone else showing on your credit reports for this account, like a debt buyer?

          Reply
  6. Pat Johnson says

    March 31, 2020 at 9:25 pm

    Hello Mr. Bovee,
    I am in my 30’s and I want to start investing in fixer uppers. My credit scores are around 730. All my bills are paid on time but I have one old debt (2015) from an apartment I’ve tried to dispute. The debt is for $2,397. Do you think this debt would prevent me from getting a loan?

    Reply
    • Michael Bovee says

      April 15, 2020 at 6:38 am

      It is likely that it would, while it is unpaid, but if you settle it, and it is updated to show as a zero balance paid collection, you can likely reach those goals.

      Reply
  7. Christine Walsh says

    February 24, 2020 at 10:21 pm

    Hi Michael me and my fiancé are going to be applying for a FHA mortgage. we are supposed to close on April 30, 2020 . My credit not the best on my Experian my scores are 578 571,566 but on credit karma my scores are very low my TransUnion is 549 and as of today my Equifax just went down 15 points from me disputing an old store credit card children place that was open in 2015 I haven’t used it since in the period of time I lost the card I thought I reported it but during that time my late husband died and I was going through a lot. Anyway I see late charges and there was a balance of 306 but it’s closed now. I also just payed up a debt that was affecting both are credit on December 2018 cryo cells when are son was born but then my fiancé got sick couldn’t work was pending on social security disability we only had my survival benefits for me and my daughter from my late husband We just payed $600 and tomorrow we are going to pay the whole balance 1,776 they Even said they would fax my mortgage broker stating we are all payed up because they put a negative on both are credit scores. My biggest worry is my student loan I’m coming out of default this Wednesday they said they can also fax my mortgage broker that I’m no longer in default and not in the neg did the rehabilitation program. The only problem is it’s going to take 40 days to update to my credit report. My mortgage broker said she can rescore my student loan and the medical bill the cryo cell saying we are all payed up no more neg on are credit with them I still owe 12,000 for my student loan but are no longer in default between both are incomes comes to 6000 a month the house we are in contract is for 316,000. I also been paying my credit down to 30% also just got a credit increase of 500 now I have 999 credit available with only $58 going to pay it down to $30. I still haven’t seen an update on my report capital one said probably tomorrow or the next day it’s should post I’m in good standards with them. I’m hoping with all these payment we just payed off and my student loan out of default I will deff get my credit up before we close god willing so we could get this house that we love. I also wanted to ask you is credit karma not Alway updated or have the right accuracy my broker said there not and they do scoring different then Experian. My fiancé worried even though his scores are great that my poor scores will get us denied plus I get more income so we need to have this joint mortgage to qualify. Ok tnx if you could give me some input if you think we have a chance getting this mortgage.

    Reply
    • Christine Walsh says

      February 24, 2020 at 10:40 pm

      Btw my fiancé credit from Experian is 797 763 729 all great scores. His scores on credit karma are a lot lower his TransUnion is 646 and Equifax is 524 we are not sure where there hoping to pull are scores from.

      Reply
    • Michael Bovee says

      March 8, 2020 at 8:12 am

      It sounds like you are doing everything you can to get this loan to go through. FHA has the most forgiving underwriting in your situation. I cannot add anything else you should do. Starting earlier with the steps you took is the only thing I suggest others do that may read this.
      Good luck!
      Post an update with how things go.

      Reply
  8. KEITH f says

    February 19, 2020 at 5:44 pm

    good evening,
    i was wondering how much a 6 year old $7000 repo will affect my chances of getting a usda mortgage, everything else on report is good ( no lates or other dings)? I currently have a 700 score across all 3 agency’s. just curious if I’m wasting my time to apply for usda.

    thank you!

    Reply
    • Michael Bovee says

      February 20, 2020 at 11:31 am

      If that collection is resolved you should be fine.
      If that collection is not resolved, you would be wasting your time until it is, or until another year goes by and it ages off your credit.

      Reply
      • Holly says

        February 28, 2020 at 6:31 pm

        Please help old student loan not showing on credit report I have preapproval for FHA loan I have chosen a house Payed for appraisal,inspection and $1000 earnest money I allowed the loan officer to know that I have an old student loans he said nothing about it was show back up is this going to show up waiting on them to approve the FH a loan now please help

        Reply
        • Michael Bovee says

          March 8, 2020 at 8:27 am

          It is possible that an unpaid federal student loan could still be found and stop this loan from going through.

          Reply
  9. jenn says

    December 31, 2019 at 9:41 pm

    I would like to apply for mortgage;
    FICO scores:
    768 Experian FICO SCORE 2
    754 Equifax FICO SCORE 5
    684 Transunion FICO SCORE 4
    My concern is that on the Transunion report ONLY, there is a collections for a timeshare ($7000) from 2015. Does it matter that it is only reported on one credit bureau; my understanding is that lenders look at middle score…I would also need to get that middle score to 760 to get the best rates…I am a few months out from actually applying for loan as I only have $3000 saved to date.
    Would I be considered for a mortgage conventional or FHA with the collection on one report?

    Reply
    • Michael Bovee says

      January 15, 2020 at 7:03 am

      FHA typically wants any collection resolved over 2k. \
      They will all see it and question it.
      You may want to try to resolve it before hand.

      Reply
  10. Nicholas says

    December 19, 2019 at 3:45 am

    I am hoping to use a VA Home Loan purchase a home around April or May of 2021. However, I have 2 open collections on my account. Current credit score is 587, and I’m certain it will be back to above 620 by my hoped for purchase date. Will those 2 collections hold me back from purchasing?

    Reply
    • Michael Bovee says

      January 15, 2020 at 11:10 am

      If the collections are unpaid, I would tackle them before applying. If they are paid collections, you are good to go when your credit score improves.

      Reply
  11. Rachel says

    September 5, 2019 at 7:35 am

    Do collections Matter when they are added to your credit report as long as they are completely paid off before applying for the mortgage?

    Reply
    • Michael Bovee says

      September 5, 2019 at 1:51 pm

      Talk to your loan officer.
      I see many mortgage loans go through with paid, or resolved collection accounts on the credit report.

      Reply
  12. Stephanie says

    September 3, 2019 at 9:12 am

    The father of my kids and I are planning on trying to buy a home in the beginning of next year. My fico score is pretty low, 543. Transunion and Equifax around the same 545. My boyfriends is 605. We are going to pay off collections in the beginning of next year when taxes go out, because we just don’t have the extra cash right now. We have paid rent late 2 times this year, and our utility bill is up to date. We have assets for down payment and closing costs. We also have a family member willing to be a co-signer. We have both worked for the same company. He’s worked there for 9 years, I’ve been there for 5 years. We make about 6,000 monthly together after taxes. Do you think we would be approved for an FHA loan? Will the co-signer be a big help in getting approved?

    Reply
    • Stephanie says

      September 3, 2019 at 9:42 am

      I also wanted to add we will be applying together. Does credit age matter? His credit goes back 6 years and a few months. I have a car payment I’ve been paying on, for 4 months now, by the time we go to apply I will have at least 8 months paying on the car. We both have 100% on time payments with what’s linked to our credit.

      Reply
      • Michael Bovee says

        September 3, 2019 at 9:45 am

        The FHA loan will be the route to go if your scores are not 640, and perhaps even if they are.
        I would take care of any unpaid collections as you are able. That will help you get approved, and could help your scores quickly enough, but the co-signer will help if your scores do not improve enough.
        Happy house shopping!

        Reply
        • Stephanie says

          September 3, 2019 at 9:47 am

          Thanks for your feedback! You gave us more hope!

          Reply
  13. Gene says

    September 1, 2019 at 7:10 am

    Hello,
    I am wanting to purchase a home. I make very good living but my credit took a hot due to late payments last year while caring for a sick parent. She has since passed on and I have worked hard to recover. FICO 8 is mid 600’s but 5,4,2 are mid 500’s to low 600’s I also have 3 chargoffs (two paid by me] 1 outstanding I refuse to pay and is being worked on by Lexington law. With all that going on could I still qualify for a hone loan?
    Thanks

    Reply
    • Michael Bovee says

      September 2, 2019 at 4:11 pm

      I do not think so Gene.
      What is the deal with the one you refuse to settle?

      Reply
  14. CeCe says

    June 28, 2019 at 7:50 pm

    I have one collections from 2015. Portfolio recovery associates bought it. I have been paying 50.00 a month. on time. my balance is 1935. my FICO is 680. spoke with loan officer at Caliber Home Loans. This is the only one negative on my credit. IM told i cannot get a FHA loan unless i pay it off. He first told me if its under 2000,00 i would be ok so long as i was paying it on tiime. I recently recieved a call teling me i cant get the loan unless i pay it off. He had me do a conference call with Corelogic Credco and Portfolio Recover Assoc. PRA told them i was a month ahead in payments and i have been paying on time. Why cant I get a FHA loan? My debt total debt is aprrox 3400.00

    Reply
    • Michael Bovee says

      June 30, 2019 at 7:50 am

      Can you come up with money to pay this off?

      Reply
      • CeCe says

        July 18, 2019 at 6:49 pm

        I tried settling and they refused . Since this post my credit score has gone up 57 points. I am at 742..

        Reply
  15. Brittney says

    June 28, 2019 at 5:42 pm

    I met with a realtor yesterday and told him my fico was 642 and he told me to get pre approved for a mortgage. I’ve been working with a credit repair company and she’s got many things deleted off my credit. Except one apartment bill of 7k. Will I be able to qualify? Or should I just let my husband get it on his own?

    Reply
    • Michael Bovee says

      June 30, 2019 at 7:48 am

      I doubt you will get approved with an unpaid collection like that.
      Also be careful and look for any other unpaid collections that are less than 7 years old to pop back on your reports. That can happen sometimes with credit repair companies.

      Reply
  16. Mandy says

    June 15, 2019 at 3:10 pm

    I want to buy a house. I have paid all of my credit cards down to 10-20% utilization. My total credit card debt is less than $1000. I have 10 collections that total about 3500, majority are medical. My FICO is 616 ,my credit score is 591, and I’m sure they will go up as soon as my credit report reflects the credit cards I recently paid down. I have$ 4000 saved .Do I have to pay the collections off before I start trying to get pre-approved ? I don’t want to hurt my credit score by getting a hard inquiry when trying to get pre-approved if I need to tackle the collection debt first? Also what is my first step in trying to buy a house?

    Reply
    • Michael Bovee says

      June 20, 2019 at 8:24 am

      FHA often has a hard stop on loan approval if your unpaid collections exceed 2k. You will want to address these first. I would try to settle for less wherever you can, though it can be tougher on medical bills.

      I would talk with a loan officer about hoe to prepare for applying for the loan, but not let them do the hard pull yet.

      Reply
  17. Miss S says

    February 26, 2017 at 3:44 pm

    I had several Collections on my Credit reports due to the failing economy, and the eventual loss of my employment after 23 years in 2009. In order to keep my home and my car, I chose not to pay on credit cards. Several of those credit cards were charged off eventually bought by debt collectors.
    The statue of limitations has passed on all of these credit cards. Most of the credit cards and or collections have fallen off of my credit report as of January 2017, except 2. Two accounts are owned by the same debt collector. The accounts are no longer in the collection side of my credit karma report, but now they’re repairing under loans. What is this? How is this? The statue of limitation has clearly passed, and in another 4 months they should fall off my credit report all together, however, this debt collector seems to have reaged these two accounts. Is that possible? I have never made a payment to this collection agency, I have never had communication with a collection agency. I have ignored the many attempts at settlement offers, simply because I was not in a position to pay anything on them and as time went by thr closer to the statue of limitations came.
    So, my question is. Can this collection agency reage the 2 accounts? Or does it still go by the original delinquency date of the original creditor?

    Reply
    • Michael Bovee says

      March 1, 2017 at 9:42 am

      It should go by the original delinquency. That does not stop errors from happening, whether by accident or design.

      If it were me I would wait the 4 months, and if they don’t drop off, I would send credit bureau disputes to get them removed.

      Reply
  18. RASHENA JOHNSON says

    February 19, 2017 at 10:08 am

    I am currently in the mortgage process. I applied for a fha loan. I had to pay a debt that I had that was non medical I settled the debt for $2000. My middle score is at 627. The collection is 5 years old will this make my credit score go down? I paid on it last month. If it will make my score go down how long will it take to update on my credit report?

    Reply
    • Michael Bovee says

      February 20, 2017 at 9:41 am

      Hard to guess at what your credit score is going to do, but you can get an FHA loan through with a 580 credit score. Most major banks that do FHA loans want to see a 620.

      Ask your loan officer if they can do a rapid rescore for credit report update speed. Otherwise I see credit reports update within 4 to 6 weeks after you resolve old collections.

      Reply
  19. Angela Rigdon says

    January 30, 2017 at 4:19 pm

    I want to apply for a VA loan of FHA loan (first time home buyer) and I have no idea if it is even possible for me to qualify. I am a single mom and relocated to more affordable area a couple years back to pay down debt and give my kids a better life, but I feel this stupid credit score is holding me back.
    I am extremely discouraged at this point and wanted to know if it is even worth the effort to proceed at this time with a home loan. My goal is to buy a home around the end of this summer. My current FICO is 586, with the last 2 years of payments on all accounts on time. I do have some relatively old medical debt in collections that is not only being charged interest almost weekly, but is also being reported inaccurately (I had medical insurance and it was not billed properly so I refuse to pay this amount). One is reported opened in May 2013, with a current balance of $2,738 (original $2,000) and another reported June 2011 from the same company with a balance of $78 (original $50), Another from the same stinking company reported May 2011 for $1,200.

    I have tried repeatedly to get them correctly reported and / or removed through the collection agencies and credit bureaus, all to no avail. They are the ONLY collections accounts I have on file, but my FICO is currently only 586 because of them (I think). I do not know what to do in regards to raising my score.. All of my other accounts have been on time for at least the past 2-3 years. Do I have a shot of qualifying for a loan with this on my report? All other accounts are in good standing and DTI ratio is 29% including all monthly minimum payments.
    P.S. I have read that medical debt is no longer being counted in home loan qualifications as of 2016 but I wanted to find out how that affects my chances in relation to my low FICO score.

    Reply