Do we have a chance with USDA

[mrsolson]

My husband and I are going to be applying for a USDA Rural Development loan in the next few days. Our scores are :

Him:

Ex: 611

Tu: 634

Eq: 605

Mine:

Ex:639

Tu:610

Eq:610

We have one negative trade line on our reports, but we have paper proof that we settled with the collection company on their behalf.

Our income is $5650 a month with our debts each month coming to $577.

[Anonymous]

Are you asking about a guaranteed loan? How many dependents do you have? You may make too much to be eligible for a guaranteed loan, depending upon the area where you are planning to purchase. Also, the home must be in an area that qualifies (see the link). I believe that your credit score must be at least 620, but I am not sure if it matters if your lowest score is below 620. My lender used my middle score (660). There are a few additional crieteria you must meet in order to qualify for the guranteed loan.  Rural Development has tools you can use to help determine eligibility. Try the link below.  The experts here shopuld also be able to help.

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

[mrsolson]

We have 2 kids. The house is in an eligable area.

[Anonymous]

To check your income limits, click on the link in my post above and click income limits for guaranteed loan on left of page. You can then click on your state from there.

[mrsolson]

I have done that and it shows we would be income eligable.

[Anonymous]

It sounds like you meet most of the crieteria. Now, the credit score issue I am not sure about. You will want to get info from one of the local experts here on that.

[mrsolson]

Thank you very much for your input.

[Anonymous]

Not a problem. Glad I could help someone else for a change.

[Jazzzy]

Is there more holding your scores down than the one negative tradeline?

Do you have any revolving credit? Balances close to credit limits?

[mrsolson]

We have come from this time last year with credit scores of 490's up to where we are now. We had a lot of bad stuff on our reports that we've paid off/settled and gotten taken care of. So our credit is still on the rise.

We do not have any revolving credit as we did close our CC we had because the fees were outlandish.