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FHA and Medical Collection's

Valued Member

FHA and Medical Collection's

I have read through so many posts on My Fico, that medical collections didn't count against me on an FHA mortgage loan. But the lender 

that I'm working with called me today and said that I needed to get them off myself and my husband's credit report. She said that it stated the 

accounts were past due. I looked the accounts up and it states the account as closed and payment as late. Also says the status details as seriously late.

I'm totally confused. Should I attempt to contact the collection companies and settle these accounts? 

Message 1 of 4
3 REPLIES
Valued Member

Re: FHA and Medical Collection's

It depends on the lender and what overlays they might have. I recently closed on an FHA loan with 3 medical collections totally 41, 67, 451. I didn't have to do anything with those. I also had 3 30 day lates from 2014 that I had to write LOE for.

Message 2 of 4
Valued Contributor

Re: FHA and Medical Collection's

A medical collection will still impact your credit score. Other than trying to PFD (pay for delete) to increase your credit score, you do not have to pay any medical collections to qualify for an FHA loan. Did you ask the lender why? May be time to try another lender. Best of luck!

Mortgage Loan Officer in Northern California - lending in The Golden State from the Oregon border down to San Diego!


Message 3 of 4
Established Contributor

Re: FHA and Medical Collection's

I only have one small medical collection of $150.  The LO factored that amount into our total debt and DTI.  I would question what your LO is doing. If the collections are high and throwing your DTI off, they may just be trying to help find ways to lower that. Regardless of why, they should explain to you the reason behind their request. If they don't, find another lender.

Nov 2014 Starting credit score TU 598; EQ 602; Ex 614; Aug 2017 TU 784; EQ 791; EX 760
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Message 4 of 4