Getting closer to 640.....a quick question

[Anonymous]

Most ppl that answer about USDA loans are going based on the USDA handbook. But if you talk to ppl that have actually gotten a USDA loan the "no baddies in 12m" rule may or may not apply depending on your credit and your LO

[jcstarkey8826]

I dont owe any money on my reports other than open accounts/loans, but I paid off an account last week and it was reading to me that they dont want you to pay it until closing? why? Whats the difference, and wouldnt it look better that you paid without being forced to?

I panic sometimes because we are getting close to doing USDA and Ive cleared all debt, removed both collections, and have no lates for the past 2 years. Im trying to take the steps to make sure when my score reaches I dont have anything too unexpected come up.

[Familywantsahouse]

I cleared UW with one smaller-ish unpaid CO from 2005 on a USDA guaranteed loan. It will fall off in 4 months. Let's see if the USDA makes us pay it....

[jules0580]

They actually did tell me to pay one after UW, but the other to leave. I was told paying on a collection updates it to an acitve account so it will be an active bad within the last yaer. However if they already pulled your credit and you pay it after that it should be ok, otherwise if you paid it, you can ask the CA to delete it and then it wont matter. But my understanding was you can not have paid the collection within 12 months. I have no idea why it looks better to not have paid it, but thats what Ive ready.

[mrordinary]

Thanks for all of the answers.... As much as we were/are looking to do USDA guaranteed, we both recently got a pay raise which may put us over the income limit. Therefore, FHA seems more like what we may have to do.... Not set in stone and we will still try. It's weird, the builder's lender wants us to go USDA because he thinks it's easier and FGMC seems to think FHA is easier?