Can I get a mortgage with collections on my credit report?

Short answerSometimes. Conventional guidelines often disregard medical collections and may require payoff of certain non-medical collections above set thresholds, while FHA is generally more lenient. Recent or large unpaid collections are bigger obstacles than old, small ones. A loan officer can run your file through automated underwriting to see what must be resolved.

Reviewed by Juan Fernando Romero, NMLS 2557318Updated October 14, 2026

The details

Paying a collection can temporarily lower your score by updating its status, so get guidance before paying anything during the mortgage process.

Payment plans on collections are often acceptable to underwriters if the monthly payment is included in your DTI.

Related loan programs

Home loan

Conventional Loans

A conventional loan is a mortgage not insured by the government that follows Fannie Mae or Freddie Mac guidelines.

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Home loan

FHA Loans

An FHA loan is a government-insured mortgage that allows 3.5% down with a credit score of 580 or higher, or 10% down with a score from 500 to 579.