Is USDA home loan the way to go after Bankruptcy CH7???

[Anonymous]

I am new to the rebuilding credit market. My wife and I filed chapter 7 in Nov of 07, we recently talked to a mortgage guy and he said that the USDA program was the way to go, as long as your score is above 620. Currently my score is 642. But he said mortgage pulls of credit is upto 50 pts lower, and USDA doesnt count a bankruptcy or foreclosure if your score is above the target mark of 620, does anyone know what will be my course of action?

 i have 3 accounts open, one credit card 600 of 1500 available, student loan of 10000 never late(110 month), and car loan of 21000 of 24000 (520 month). all bills are current and never late since chapter 7.

please help

[llecs]

Aside from the BK, you should have other baddies reporting, right?

Where did you get your scores from?

You'll see a bump if get that CC to report $100 or less. Also, IMO, get another CC and let that report $0 (maybe a store charge card if the other is revolving). Doing those two things will help you by quite a bit.

[Anonymous]

i should clarify that my credit card has 600 on the account with 900 available(1500 credit limit). my credit score fom equifax is 642 as of May 1, where i have had an account fixed since then to now report the old mortgage  as 0 balance 0 past due, before the correction it said 123,000 balance and 2333 past due, which was an error...will this help my score improve now?

i have my credit reports from the other two companies but no actual scores. my wife has her credit reports and no scores, should i try to get these or wait a few months?

[llecs]

You are on the right track. Aside from myFICO, the only other place to get your EQ FICO score is from Equifax.com.

Ideally your CC balance should be lower. You'll see a significant gain if you get the CC to report $135 or less. Right now it is at 40% utilization and FICO is dinging you for that.

The change in the mortgage may or may not help. If it was actually showing as late, and not it is not, then you might see an increase from that. If it was current and now shows $0, you might not see any increase.

IMO, I'd start by pulling your 3 free reports for each of you if you haven't done so yet via annualcreditreport.com. Depending on what your goals are, I'd also recommend pulling your FICO scores for each. MyFICO is the only place you can get both TU and EQ FICO scores together. As mentioned, you can also get your EQ FICO score from Equifax.com. And aside from myFICO, the only place you can get your TU FICO score is from transunioncs.com. If you opt to pull scores from here, be sure to google "myFICO discount codes" first. Unfortunately as of mid-February, EX no longer allows consumers to pull their own FICO score.

[Anonymous]

Yes, USDA is the most BK friendly program out there.  You need to have at least 620 and 660 will make it smoother going. They are very strict with DTI ratios if you have a BK in your history, but if you have reestablished credit with a perfect history after the BK they will give you a loan without making you a full 2 or 3 years.

You also can't beat zero down and no PMI!