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Collections, Late Payments and Mortgage Guidelines

How derogatories are treated by common loan programs.

6 min readBy NexGen Capital Corp · NMLS 1766649Updated 2026Credit Improvement

Short answer

How derogatories are treated by common loan programs.

Mortgage lates weigh heavier than consumer lates. Most programs want 12 months clean on the current mortgage.

Late payments

Mortgage lates weigh heavier than consumer lates. Most programs want 12 months clean on the current mortgage.

Collections and charge-offs

Some programs require payoff; others allow open collections up to a threshold. Medical collections are often excluded.

Bankruptcy and foreclosure waiting periods

Waiting periods vary by program — commonly 2–4 years after Chapter 7 discharge, and 3–7 years after foreclosure.

Key takeaways

  • Program guidelines vary — a broker can match your file to the right one.

Frequently asked questions

Related mortgage option

Ready to apply this to a real loan? Review how FHA Loans work in Florida, or estimate your monthly payment before you talk to an advisor.

Sources

Program rules change and individual lender overlays apply. Verify specifics with the agency or with a licensed NexGen Capital advisor before relying on them.

Reviewed by NexGen Capital Corp

Written and reviewed by the licensed mortgage team at NexGen Capital Corp, a Florida mortgage brokerage (NMLS #1766649). Verify our license on NMLS Consumer Access.

Last reviewed: 2026

This article is educational and is not a commitment to lend or an offer of credit. Speak with a licensed NexGen advisor about your own situation.

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