Collection Accounts

Collection accounts



Collection Accounts

Buy a house or Refinance

FHA after bankruptcy   FHA after foreclosure   FHA after short sale


Collection accounts - FHA does not require collection-accounts to be paid off as a condition of mortgage approval. However, FHA does recognize that collection efforts by the creditor for unpaid collections could affect the borrower’s ability to repay the mortgage.

  • If evidence of a payment arrangement is not available, the lender must calculate the monthly payment using 5% of the outstanding balance of each collection, and include the monthly payment in the borrower’s debt-to-income ratio.

The FHA Resource Center


Medical collections - Medical collections do not need to be paid for an FHA loan approval. FHA does not take medical collections into consideration. FHA does not require medical collection accounts to be paid off as a condition of mortgage approval and does not include them in your debt-to-income ratio.


FHA has changed the minimum credit score for new borrowers:

  • FHA requirements new borrowers will now be required to have a minimum credit score of 580 to qualify for 3.5% down payment
  • FHA loan requirements new borrowers with less than a 580 credit score will be required to put down at least 10%
  • This has allowed the FHA to better balance its risk and continue to provide financing for home buyers

Borrowers with a prior bankruptcy, foreclosure, deed-in-lieu, or short sale may be eligible for an FHA insured loan if the bankruptcy, foreclosure, deed-in-lieu, short sale was the result of a documented extenuating circumstance.

Whether you're planing to buy your first home, refinance, to lower your monthly payments or refinance to take cash out.


Credit score - On January 20, 2010 FHA announced a new policy to address risk. FHA changed the minimum credit score for new borrowers.

  • FHA requirements new borrowers will now be required to have a minimum credit score of 580 to qualify for 3.5% down payment
  • Borrowers with less than a 580 credit score will be required to put down at least 10%
  • Minimum 500 credit score

This has allowed the FHA to better balance its risk and continue to provide financing for home buyers.


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Recent Articles

  1. Credit Score Needed To Buy a Home

    Sep 13, 22 07:40 AM

    Credit score needed to buy a home FHA minimum credit score is 580 to qualify for FHA's 3.5% down payment program. Below 580 credit score requires 10% down payment with a minimum 500 credit score.

    Read More

  2. FHA Minimum Credit Score

    Sep 13, 22 07:34 AM

    FHA minimum credit score to purchase or refinance is 500. Purchase 3.5% down payment with a 580 minimum credit score. Below 580 credit score requires 10% down.

    Read More

  3. Requisito De Prestamo De La FHA 2022

    Sep 07, 22 04:09 PM

    Requisito de prestamo de la FHA 2022. Requisitos de calificación crediticia de la FHA para comprar una casa o refinanciar es 500.

    Read More


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