HELOC With Collections

Have collection accounts on your credit report? At least one HELOC we offer lets them stay open up to set balances, and medical collections can stay open at any balance.

Collection Accounts Medical Collections Charge-Offs Judgments And Liens Payoff At Closing Collection Accounts Medical Collections Charge-Offs Judgments And Liens Payoff At Closing
Medical Collections OK Open Up To $2,000 Older Ones To $2,500 Pay Off At Closing

What a HELOC with collections requires

Each item below is a requirement or rule of at least one HELOC we offer.

  • Collections under 24 months old can stay open up to $2,000.
  • Collections over 24 months old can stay open up to $2,500 each.
  • Medical collections can stay open regardless of balance.
  • Charge-offs and collections above those amounts are paid in full at or before closing.
  • Judgments and tax liens are paid off at or before closing.
  • At another program, no charge-offs in the last 12 months.
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Medical collections can stay

Smaller balances can stay open

Pay the rest at closing

Charge-off timing matters

Judgments get paid off

Rules differ by program

Can You Get A HELOC With Collections?

Yes. At least one HELOC we offer allows open collections up to set balances. What you owe, how old it is and whether it is medical decide what has to be paid.

Collections do not rule out a HELOC. At least one HELOC we offer lets a collection under 24 months old stay open up to $2,000, and older collections up to $2,500 each. Medical collections can stay open at any balance.

Anything above those amounts, including charge-offs, must be paid in full at or before closing, and so must judgments and tax liens. For first mortgage rules, see our page on collections and charge-offs.

Other programs are stricter. One does not allow non-medical collections over $500. Another wants no charge-offs in the last 12 months. A third requires non-medical collections to be paid off when they exceed $250 on one account or $1,000 in total on a manually underwritten file.

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Why use Saxton for a HELOC with collections

This page is for homeowners with collection accounts, charge-offs, judgments or liens who want to know what must be paid before a home equity line closes.

Medical Collections Can Stay

At least one program lets medical collections stay open at any balance.

Small Balances Can Stay

Collections under 24 months old can stay open up to $2,000 at that program.

Older Ones Get More Room

Collections over 24 months old can stay open up to $2,500 each.

Pay The Rest At Closing

Larger balances and charge-offs are paid in full at or before closing.

Recent Charge-Offs Matter

At least one program wants no charge-offs in the last 12 months.

Limits Stated Up Front

One program caps non-medical collections at $500, and another has judgments and tax liens paid off before you close.

Hear From Homeowners Like You

Frequently Asked Questions

Straight answers about getting a HELOC with collections.

Yes. At least one HELOC we offer lets collections stay open up to $2,000 if under 24 months old, or $2,500 each if older.

Not at every program. At least one lets medical collections stay open regardless of balance, and another does not require them to be paid off regardless of amount.

At least one program requires charge-offs and collections above its limits to be paid in full at or before closing. Another wants no charge-offs in the last 12 months.

At least one program requires judgments and tax liens to be paid off at or before closing.

Yes. At least one program does not allow non-medical collections with a balance over $500.

At least one program allows collections and charge-offs above its limits to be paid in full at closing rather than before.

At least one program sets the limit by age: up to $2,000 when the collection is under 24 months old, and up to $2,500 per collection when it is older.

Find out what you qualify for

Tell us what collections are on your report and we will show you what has to be paid before your HELOC closes.

Get Pre-Qualified
Official program information
Written by Saxton Retail Mortgage · Reviewed by Saxton Mortgage, LLC, NMLS #1717191 · Last updated August 27, 2026

Loan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.