Mortgage with paid collection accounts?

[Anonymous]

Hi all,

So I have been lurking around various myFICO boards for the last month or so, and I have learned a lot of great stuff! Long story short, my husband and I would like to apply for a mortgage next May-ish. I have the highest income between the two of us, and my FAKO scores are currently anywhere from 570's - 610's depending on what site I use to access them. My husband's are hovering in the 560's. We have been working on a credit rebuild and have had some recent success with deletions.  We're going to keep working on that.

That being said - I have six medical collections accounts that I intend to PIF, but I don't think there's a chance in heck that the CA is going to delete them from my report.  The hospital/therapy office that they are from hasn't been much help either.

So does anyone know (and I know I haven't given you specifics of our situation), would PIF collections automatically preclude us from qualifying for a mortgage? Or is that dependent on the rest of our credit profile? We were hoping to qualify through FHA or Ohio's program.

Thanks!

[ShanetheMortgageMan]

I can't guarantee you, but you will have an amazingly good chance of getting the medical collections off credit using the HIPAA program http://www.whychat.5u.com/GUIDE%20HIPAA%20PROGRAM.html

To answer your question though, having paid collections on credit is fine... it really just matters when they went to collections.  New collection accounts within 12 months of applying can be a hurdle in getting approved, so even if they are paid but over 12 months old you should have a decent shot (as long as no other negatives in the past 12 months).

[Anonymous]

Thanks for your input Shane! That gives me a sigh of relief. Still a long way to go, but we're going to keep plugging away.