usda home loan w/ collection

[tnph04]

My husband and I were planning on getting a usda loan next month.  Today i see a "new account" on my credit report.  It's a collection for a medical bill.  Although I'm not sure why because i had been paying the hospital money every month $40 a month ( i guess they wanted more then what i was sending (they wanted $50 a month i had always heard if you pay the hospital something each month I'd be fine....... guess not) I was pissed to see that today on my credit report.)  I have been working hard on my credit for over a year.  Anyways........ because of this collection I'm not sure we can qualify for a USDA loan.  The collections if for $499, which I'm going to pay off in Feb when i get my tax return.  Since this is a new collection, will this affect me from getting a usda loan since its not "12 months" old?

[BrianB_The_Loan_Professor]

Medical collections arent as big a deal you should be fine especially if you pay it off and it shows a zero balance

Hopefully the rest of the credit is clean as that will help your situation

Brian

[tnph04]

Yes i'v  been working on my credit for about a year.  Everything is good except this new collection i got.  I have a walmart card and an amazon card, they have had no late payments since they have been opened  (almost 8 months), and we have a student loan, which is up to date., and we have 2 negative accounts but they are a year and half old, (been paid for 1 1/2).  WE both work been at the same job for 14 years  not much debt.... so I'm hoping we are okay....just got worried when i saw that collection account

[BrianB_The_Loan_Professor]

Yeah the creditors know when to send the skeleton out of the closet - 

sorry it happened to you - hope it all turns out well

Brian