02-14-2012 02:40 PM
For a score hovering around 625... more than one risk layer (credit waiver for low score and payment shock - no previous housing pmts).
I know there are "compensating factors" to consider - he's been at his job 8 years and has cash reserves.
Technically yes, he could be approved but we're just wondering if it's really that common or if it's just a huge stretch? LO thinks he should give it a shot.... just curious if anyone has opinions or similar experiences to share.
02-15-2012 08:27 AM
I wasn't aware that this was even a possibilty. Where did you hear of this waiver. Please tell me more. We've been deseprately trying to get my gf's score up so we can apply.
02-15-2012 08:36 AM - edited 02-15-2012 08:38 AM
Oh you gotta check out this document: http://www.rurdev.usda.gov/SupportDocuments/CA-SFH
GREAT info, all the details on what they will and won't accept.
They can submit a debt waiver (in case your DTI is over the 41%) and they can submit a credit waiver (explaining why they will give the loan even though credit scores are low). I believe those are the 2 main things they can do to get USDA to approve an otherwise ineligible application.
I just wonder how common it is for lenders to do that.
02-15-2012 09:16 AM
Our lender required us to be at a 640, but it could be because USDA is a little less strict with a score abouve 640 I guess.
02-15-2012 09:28 AM
You just made my day! Read it and I think she will qualify now. Thank you so much. Now we can at least talk to a lender. I didn't want to talk to anybody until we would actually qualify