My DH has an open collection listed on his CR's for the amount of 3336.00. If he were to set up a payment plan with the OC and consistently pay the agreed amount for 6 months and have the money order stubs and the signed agreement from the OC to submit to the Lender would this be enough for the Lender to approve us for a home loan??
This is the kind of thing that falls under the heading of "judgment call" for the underwriter, however... If you have a payment arrangement you can document ,and if you can demonstrate on time payments according to that arrangement, and if that payment fits within allowable debt to income limits, and if there are not too many other questionable issues on the loan, you should be able to get a conforming loan. There are also non-conforming options that allow collections to go unpaid.
