Mortgage Loans

[K_J]

 I just got a call from my builder that USDA increased their minimum  credit score from 620 to 680 effective yesterday (1/3/13), has anyone heard about this rumor or news?

[maluba]

I called a local office in CA (since mine in AL was closed) and the lady I spoke to said she hadn't heard anything like that. I'll call my local office on Monday to be sure.

[Mike_B03]

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K_J wrote:

 I just got a call from my builder that USDA increased their minimum  credit score from 620 to 680 effective yesterday (1/3/13), has anyone heard about this rumor or news?

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Wow that would be a huge increase that would affect many many people.

What would happen to people who have already started the loan process but haven't closed yet?

[custombusa]

i dont think the credit score requirement changed. I emailed a loan officer in ohio and he said they did change the amount of time after a BK from 2 yrs to 3 yrs before you can get financed. I dont know if thats true or not but its what i was told.

[JM-AM]

The rate change is lender specific.

Lenders can change their requirements for qualification. Has nothing to do with USDA requirements.

USDA requirements are minimum requirements for obtaining USDA funding. Then the lender has their requirements and lenders investors may have another set of requirements.

[K_J]

I called my LO today, he told me that USDA sent out a new matrix out yesterday specifying that the new guidelines would be 680 minimum, however they retracted that information saying it was an error. He told me going from 620 to 680 is big jump and do not see them doing that. He did say that USDA would be rolling out new guideline for credit scores soon and to stay tuned.

[JM-AM]

Sounds a little fishy to myself.

If it was generated by USDA then we all would have received the same error. To my surprise (not) no other bank and or broker in my area has either.

[lifeafter]

I sure hope that's not true. My middle score is only 665. I've googled and googled and can't find anything to support that statement, I even checked USDA's web site.  For those of us going through the process who don't have scores that high, this would be devastating news. Maybe your lender changed their min requirements. I've read of that happening. If that is the case, I hope it won't prevent you from achieving your dream of homeownership.

[K_J]

I actually heard this from my builder and I followed up with my LO. The builder and the LO are not affiliated so I see no reason for both to make this up. The latest news is that USDA would be making changes to their eligibility areas and the changes would take effect march 27th.

[MovingForward_2012]

Hmmm...I wonder if they are dealing with a lot of foreclosures/delinquencies and to ensure they remain in business, they have to hike the requirements. I am just wild guessing here.