Medical Collection and FHA

[chartley3]

I have a question for our mortgage pros out here.

I have a medical collection on my Credit Report for $1342 for my DW surgery back in 2003. The lady Im working with at the bank is unsure if I need to pay this collection off prior to preapproval since FHA guidelines change daily. My question is does FHA still look past medical collections or have they enforced a monitary threshold?? I can pay off the collection with Simulus Money but I didnt want to have to use it for that purpose if I didnt have too.

Thanks,

[DallasLoanGuy]

I have never seen FHA require a collection be paid. Only liens and judgements.

Some lenders require it..... but FHA does NOT!

[chartley3]

Thanks for clearing that up. I just wrote the explaination letter today explaining why its on there and the circumstances surrounding it. Hopefully that will put the issue to bed.