USDA Collections & Judgments
Collections do not all receive the same USDA treatment.
Medical collections
Current Chapter 10 states that USDA does not require medical collection accounts to be paid.
Non-medical collections over $2,000
If cumulative non-medical collections exceed $2,000, current Chapter 10 provides three paths: pay them in full before closing; use/document a repayment arrangement and monthly payment; or include 5% of the outstanding balance as a monthly liability.
Underwriter still reviews the risk
The USDA-approved lender's underwriter must review collection accounts and determine whether the applicant is an acceptable credit risk, regardless of the GUS recommendation.
USDA rule, GUS result, or lender overlay?
If a lender says this cannot be done, identify the exact layer before treating the answer as universal. Use the USDA decline framework →
Official USDA baseline
USDA Chapter 10 — Credit Analysis
Educational summary. Current USDA handbook, GUS findings and approved-lender requirements control the actual file.