Hello Shar,

To clarify, are the collections paid already? If so, they will have no current effect on whether or not you are approved for a loan. Having them on your credit report as being paid will not harm you. You may have previously incurred damage to your credit scores, but generally your scores will be corrected 30-60 days after the collections are paid or removed. Good luck.

Kind regards,

Jason Diperstein
E Mortgage Management
800.793.9633 ext. 156
jdiperstein@emmloans.com

Back during boomtime, it was still pretty easy to obtain an FHA loan with medical collections. Because medical collections are very common (darn hospitals sooooo expensive) FHA takes them into consideration as long as they are explained by you. You will have to supply a letter of explanation to your lender.

Please just speak with a mortgage lender. They're going to find out about these collections anyway. Just say "I want to buy a home, my credit may not be so great right now, I've got these medical collections,, what do you think? What do I need to do to buy a home?"
Let me know how it goes.

emilyknell1@yahoo.com