I am a long time lurker on the forum (so much great information!) and have finally come to register an account so that I can ask for a little guidance. After reading zillions of threads on USDA loans, a good chunk of the actual USDA paperwork, I am here:
FINANCIAL INFORMATION
I will be applying for a USDA direct loan.
I have a Ch. 7 bankruptcy/foreclosure that was discharged in May 2011.
I have no collections/accounts in bad standing.
All credit cards have $0 balance.
I have ONE 30 day late mark on my credit history in the last year (it was in August 2014).
My credit scores are low at 569/632/613.
I have a monthly gross income of $4330.
I have monthly debt of $382 (auto loan, only debt).
I reside in Iowa and the USDA loan will be completed for residence in Iowa.
Planning on applying in March-April-May this year depending on what I can find out about turnaround time on the loan approval.
I am trying to get my paperwork together. What information is USDA going to look at? My bank account statement? Paystubs? Tax returns? How far back on each of these?
What type of time frame should I expect from application to either denial notice or receiving my certificate of eligibility? We are looking to try to pair our move with the end of the school year to make a clean move for our kids (I realize it may be unavoidable) but time frames seem to vary so widely.
Finally, we have minimal reserves but will be using our tax refund to help fund our closing costs/expenses. Will this be an issue in terms of a large tax refund deposit being set in our account right before we apply? If it is, my wife has a separate business account (she does in home childcare for the last year but it wont continue when we move and her student loan debt (only in her name) will make us outside the debt/income ratio, so I'm the only applicant). Should I deposit it there and have her "gift" it to me? Or is there no problem with us getting it deposited into our savings?
Can someone help with these questions? I am trying hard to get everything in order but also to keep all paper trails (do they call them that still?) clean and easy to follow income/expenses/etc. if the USDA is going to look at bank statements. Thank you for any help - and all the help I've gotten in the past year reading through the forum 