do collections on your credit report influence qualifying for a loan

The short answer is yes.. Certain programs require that if you have collections over $1000 combined, then we have to add a "Phantom Payment" to your debt to income ratio's.. This is just in case the creditor decides to go after you for payment, the mortgage lender wants to be sure you can still pay your mortgage payment if you are now obligated to make payments on this old unpaid debt. Other loan programs might make you pay some or all of them off. . If the collections are for medical reasons, then most lending programs ignore them.. However, any collection will affect your credit scores.. you need to have sufficient credit scores that meet eligibility guidelines for the loan product you are applying for.. if you have numerous collections, it's likely that your score is not high enough to qualify. Obviously, more info is needed to address your exact scenario. I am a mortgage professional with over 30 years of lending experience. If you or someone you know is looking for lending options, feel free to reach out to me. William J. Acres NMLS#226347 480-287-5714