USDA Guaranteed requires collections paid off?

[thankfulheart]

This is news to me, that collections have to be paid off 12 months before approval???  I didn't see anything about that in the guidelines that I read and the LO didn't mention it to me when I said I was looking at reapplying in 6 months...is this really true?

[Anonymous]

I had several unpaid collections that were not required to be paid off......I still need to deal with them on my own but was able to close on my house last month.

[Booner72]

---

@thankfulheart wrote:

This is news to me, that collections have to be paid off 12 months before approval???  I didn't see anything about that in the guidelines that I read and the LO didn't mention it to me when I said I was looking at reapplying in 6 months...is this really true?

---

I think she probably said all collections in the last 12 months have to be paid off. 

[rckstrscott]

---

@Booner72 wrote:

---

@thankfulheart wrote:

This is news to me, that collections have to be paid off 12 months before approval???  I didn't see anything about that in the guidelines that I read and the LO didn't mention it to me when I said I was looking at reapplying in 6 months...is this really true?

---

I think she probably said all collections in the last 12 months have to be paid off. 

---

+1 -- I agree with Booner, this is probably what she meant.

[BrianB_The_Loan_Professor]

Banks can have their own overlays to the guidelines so they may require you to pay off collections - I would ask for clarity 

[sharpie]

I was told this week that there can be no open collections or judgments AFTER closing.  Sounded rather backwards to me.