07-08-2013 07:37 PM
I have a older medical collection on my credit reports from Aug2011 for $2,995. My loan officer has not advised me to pay this at all, he actually had me pay one from 2008 for $1,101. So my question is... do you think I will need to pay this medical bill as a condition? I do not know what the USDA guildlines are on medical bills. But the LO told me that they just dont want to see more than 5,000 in collections??? If we need to pay the $2,995 at closing it will pretty much wipe us out of the money we were saving toward moving expenses. Anyone know what USDA UW requires in this scenario.
07-08-2013 07:47 PM
I had a medical collection from 2010 for almost exactly the same amount that they ended up requiring me to pay. At first my LO didn't think it would be an issue, but he asked UW and they said yes. I think it's a bank overlay and not a USDA thing, and depends a lot on your overall picture. If you're close to the 640 threshold, you'll probably have to take care of it. My LO did say that it didn't matter if it was PIF or settled for less, just so long as it was closed out. I was able to get PFD for PIF though so I took it.
07-09-2013 06:07 AM
Send the one you did pay a GW letter and ask them to Delete. Medical is a very very easy one to get removed from your credit report.
For the 2nd one that is still due, write or call and explain you will be apping for a house in the near future and was advised to only pay this if it can be removed otherwise you were advised to pay it after. Basically a PFD.
07-09-2013 08:15 AM
How were you able to get the PFD and settle? I have tried this before with no success.