Why You Should Not Pay Medical Debt Before Your FHA Loan

August 4, 2026

100+ MORTGAGE LENDERS, SO YOU GET THE BEST.

BARE BONES CLOSING COSTS. NO JUNK FEES.

CUSTOM GUARANTEES FOR EVERY SITUATION.

BENEFITS YOU'LL NOT FIND ANYWHERE ELSE.

HAVE BANKS COMPETE FOR YOUR BUSINESS.

Specialized In Jumbo Loans, Investor Loans, DSCR Loans, Non-QM Financing, Commercial Mortgages, and Tax-Informed Lending Strategies

Published By

David Ghazaryan

Owner / Broker / Banker

Contact Me At

(702) 766-3744

NMLS 1486726

TL;DR

FHA guidelines recognize that medical debt is often unexpected and treat it differently than other types of collections. An outstanding medical bill does not automatically disqualify you from a home loan.

In most cases, medical collection balances are not included when a lender calculates your debt-to-income (DTI) ratio. The only exception is if you have a formal payment plan, in which case that monthly payment is counted.

You are not required to pay off medical collections before applying for or closing on an FHA loan. The decision to pay is a strategic one that may help your credit score but will deplete cash reserves needed for a down payment or closing costs.

Read the full blog article here: https://www.iqratemortgages.com/blog/fha-loans-with-medical-debt-in-houston-and-san-antonio-texas

Video Transcript:

I know medical debt won’t automatically stop your FHA loan. I am David Ghazaryan. I structure loans using FHA guidelines. I calculate your debt ratio ignoring unpaid medical collection balances. We use this specific rule to maximize your home buying power. I must warn you: new collections during escrow stop loan approvals. See my full analysis, article, and platforms in the description.

Read Blog Here: https://www.iqratemortgages.com/blog/fha-loans-with-medical-debt-in-houston-and-san-antonio-texas

David Ghazaryan

Smart, Strategic, and Stress-Free Mortgages
- Expertly Crafted by David Ghazaryan

Take the Next
Step Today

or Schedule a Free Consultation

Prefer to speak with someone? Call us at (702) 829-0550

Big iQRATE Mortgage Icon