Question about recent collection

[FLAJenn]

My plan is to purchase a home or get the process started toward the end of next year when my lease is coming to an end. A collection just popped on my report and I paid it. I'm working on a GW for it, but my question is since it shows as a zero balance will that impact FHA or USDA approval chances?

By the time I'm ready to apply my last late payment on anything will be 8 months old and I just have one other medical collection that I plan to PFD soon. I also have two CO at a zero blance that will fall off in 2014, but have a letter from both companies for those.

[JM-AM]

Generally speaking most lenders want lates to be 12 months old. But is not always a deal breaker.

As far as payed off collections with 0 balances should have no impact.

Once again everything else would have to be acceptable scores, income, etc etc...

Like any situation with credit issues YMMV depending on the lender and UW.