I have to go either USDA or FHA because I have a FC on record. Question is, let's say I get pre-approval for a USDA loan, but then find a house that's not in an eligible area and need to go the FHA route, does it matter? Presumably the pre-approval would be on the lender's overlay and when they submitted for UW it would be based on the house I'd selected and the loan program I needed? Is this correct? I know people here have switched to conventional from FHA and vice versa so assume switching from USDA to FHA or vice versa would not be unusual. Is there one over the other I should apply for and switch if necessary?
Also, if I had a pre-approval for, say, 90 days and didn't find a home in that time, do lenders typically extend after another HP to make sure the credit profile hasn't changed?
Starting Score: 2/2013 EQ 535
Thank you EZ - you're becoming my personal mortgage advisor!
Another question because I know you did the Back to Work Program. If I apply now, I need to do it under back to work (or wait until Spring, which isn't the worst idea) so I need to do the counseling session. Found Springboard and I'm waiting on a call to set up a time - is the 30 day wait between counseling and applying 30 days between counseling and appying for pre-approval or between counseling and the lender submitting a final application to FHA UWs?
Thanks!
Thanks EZ! I did the counseling with Springboard today and have my certificate. I found it useful and the counselor was great. I also heard back from the person I contacted at the local bank. They go as low as 640, but here's what she said about USDA:
"however, the guidelines for USDA for a foreclosure is a minimum of 36 months and for a judgement it’s 12 months. The satisfaction would need to be recorded for the judgement , you would have to prove the judgement was paid in 2/12." (Not sure where she's getting 2/12 from. If it's 12 months, it would need to have been paid by 6/13).
I wrote back back and said it was my understanding that USDA was following FHA when it came to less than 3 years from FC and extenuating circumstances. I said I was also considering FHA and asked if they were working with the Back to Work program. I also included info from HUD describing the program. I know the judgment question is one that's been raised before, but my understanding is that if it were related to the same loss of income (the "event") that led to the FC, that it could be overlooked as long as it was paid.
I had a loss of income of 63% leading up to my FC. The counselor said I'm in good shape to move forward. If I can't find a local lender, I'll definitely pm you. 
So . . . I guess I can seek pre-approval in mid-August!
congrats on the clear to close! Hope it comes in today!