Credit Improvement

Collections, Late Payments and Mortgage Guidelines

How derogatories are treated by common loan programs.

6 min readUpdated 2026Credit Improvement

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

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