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.
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?
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!