Collections/Charge Offs

For one-unit principal residence properties - borrowers are not required to pay off outstanding collections or non-mortgage charge offs regardless of amount. 

For investment properties, multi-unit (2-4 unit) primary residences, or 2nd Homes - Collections and charge offs must be paid off at or before closing. 

Exception: They may remain open when they are:

• Less than twenty-four (24) months old with a maximum loan balance of $2,000;
• Twenty-four (24) months old with a maximum balance of $2,500 per occurrence; or
• Medical collections