We are in the process of obtaining a USDA Guar Loan. Credit score they are using is 655. So, no issue there.
In January 2010 we modified our loan. We WANTED to refinance and waited and waited. Then were told we couldn't due to the mortgage insurance. So, we were then directed to modify. Our term stayed the same. Only thing that changed was interest rate.
Now my LO is saying that they look at a modify as a foreclosure? Sure wish someone was honest with us and let us know this.
Any opinions on this? Anyone gone through this? Worst case senario we have to wait another 6 months to get the USDA loan (he said for foreclosure you have to be 3 yrs out). We are also looking at new construction so if we started today it wouldn't be done for at least 6 months.
