Current FHA guidelines for collections. Need advice.

[Ravensfan2001]

I'm in the FHA Plus program in Virginia. Here are the "Credit underwriting requirements:"

Credit Score: Minimum 620 (lower middle score of all borrowers)

Collections: Individual outstanding collections exceeding $250 or cumulative total exceeding $1000 must be paid off prior to closing (manual and AUS approvals) Plus all applicable FHA credit guidelines.

Here are our current unpaid collections:

Me (Total $1539)

Midland $1067

United Consumers $319 (medical)

Complete collections svs $153 (medical)

DH (Total $1115)

Berks $119 (medical)

Berks $176 (medical)

complete collections $198 (medical)

Suburban Credit $159 (medical)

Suburban Credit $56 (medical)

Suburban Credit $108 (medical)

Credit union charge off $299

Medical Judgment currently in payment plan 4 months $1497.90 (DH)

Our total in unpaid collections is $2654. I am currently working on paying Midland and United Consumers. I was told by the LO that the charge-off does not have to be paid. But what I'm not completely sure about is if ALL collections have to be paid, or if I can just pay some of them. Is there an exception for medical collections?

We are in the mortgage application process. All paperwork was turned in. Inspection and appraisal were done. Haven't heard back about the appraisal yet. Tentative closing date 9/25/13. Will we make it?

[DallasLoanGuy]

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@Ravensfan2001 wrote:

I'm in the FHA Plus program in Virginia. Here are the "Credit underwriting requirements:"

Credit Score: Minimum 620 (lower middle score of all borrowers)

Collections: Individual outstanding collections exceeding $250 or cumulative total exceeding $1000 must be paid off prior to closing (manual and AUS approvals) Plus all applicable FHA credit guidelines.

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have you tried another lender?

those are bank guidelines..... not fha guidelines.

not all banks ask for collections to be paid;