Credit Collections, Judgments and the Mortgage Process

Can I still get a loan if I have collections on my credit?

Guidelines do not always require that collection accounts be paid off as a condition for loan approval. Most underwriters will also not consider medical collections  in their overall evaluation. Especially if the other credit of the borrower is satisfactory and the collections are not extremely large. When the lender runs an automated approval it will indicate collections that must be paid prior to closing.

That being said, individual banks may have "overlays" which require the collections be paid.

They will almost always require that court-ordered judgments be paid-off before the mortgage loan may fund.  Previous or current collections of judgments are considered when evaluating a borrower’s credit profile.

The "overlays" at specific banks will usually be the deciding factor as to whether the collections must be paid. I highly recommend using a licensed and experienced loan originator who deals with these situations on a regular basis and is familiar with which banks are the best fit for the borrower's profile.