In Underwriting...PLEASE HELP ME MAKE SENSE OF THIS!!!

[Anonymous]

I am a long time lurker here and I am very thankful to everyone on this board who have helped our family. Here is our situation.

My husband is buying a house for us $149K, USDA Guaranteed. Our lender is Mid-America Mortgage we are in NC. His scores are all lender pulled Eq- 653, Ex- 679, Tr- 651. His CR is pretty clean with no lates, repos, EXCEPT here recently his student loan reported Sept, Oct, Nov as late. When he found this out, he got another deferrment until next year. However, ACS Education is refusing to correct his CR. So, that worries us.... Also, one small paid collection $78 from 2009.

Secondly, his DTI is very high like 48% with the mortgage. The LO was confident with his scores, salary that she could present positive factors. Including the plan to pay off at least 7K in debt in Feb/Mar 2013.

The house is a new build and we are about 96% of completion. I am very confused and frustrated with the process. We are in our lenders underwriting now for 2 weeks and we have submitted everything they have asked for. I am wondering how USDA underwriting will go, if this new recent reporting of late will affect us badly, do we have any other options as far as a new lender, builder financing..... Any experiences, advice??? What can I expect now?

Help me PLEASE!!!

[Mike_B03]

Are those credit scores you posted from before or after the lates were reported? I'm not sure how they will look at the actual late payments, but if they caused the scores to drop, that will be a problem as there is a minimum credit score that they need to make it go through. When is your scheduled close date?

[Anonymous]

These scores are before the reported lates. I just talked with my LO and she says his Exp score has DROPPED to a 541! His Equifax score DROPPED to a 610! I can not believe this!!! I am majorly worried at this point. She says she want to send the deferrement notice to the CB and rescore. She is thinking the CB will remove the lates with the letter. I am not confident at this point. I don't know what to do or think. She says if the CB do not remove the lates, then we will need to pay a large portion of debt before we close. Our closing date was scheduled for Dec 30, but I know we are not making that date because USDA in this area is 4 weeks behind. Any advice of what we should do??

[Mike_B03]

What is the new score with TransUnion? What is the minimum score you need for the loan to move forward? That's a pretty tough spot to be in, hopefully that letter will help out.

[jules0580]

From what I was told USDA will not take any late payments at all in the past year, so hopefully they can get the CB to remove them, otherwise one thing that may help you rest easier, is that when I was going through it in July, my lender said that she never saw USDA deny one after lender approved it.  and I was a nervous wreck for the month it took going back and forth

[Anonymous]

Ok Thank you. I am not sure about any of this, I am hoping the CB removes it. Any other experiences??

[Anonymous]

His Transunion score did not go down, 665. I am not sure about none of this actually. I am a wreck.....

[jules0580]

It depends alot on your lender and the info they send to USDA.. Our lender did not repull our credit after the first time, but they warned us that it was possible and not to open any new lines of credits or have any new lates because that could squash the whole deal. If you have a letter explaining the situation coming from the student loan lender they may take that. I know its such a stressful time..I was going crazy for two months waiting for ours.  I would keep calling and contacting the student loan place to see if you can get them to remove it, they are your best bet

[Anonymous]

This is a VERY stressful time and this happens. We have tried ACS several times, no success. My LO seems as if in 20 years she has never had this happen before.... Husband wants to give up already... I don't know what way to turn..

[tooleman694]

You really need the late removed.