Your borrower may or may not have to pay off any collections.  If the loan is Automated Underwriting System (AUS) approved, Kentucky Housing Corporation (KHC) will follow those findings.  If the loan is not AUS approved for FHA and VA, you will need to follow agency requirements.  For RHS loans, if credit score is below 620, the UW may determine it is not necessary to payoff a collection.  For Conventional Loans manually underwritten (no findings), collections in excess of $250.00 or combined collections in excess of $1,000.00 must be paid in full.

If you have further questions regarding this process and you are unable to locate the answer on the Info Center, please submit your question online by selecting the "Ask a Question" option located at the top of the screen.