This is my first time buying a house so I am very anxious and was wondering if someone could offer some insight. I first put in my application for a USDA loan with my LO on 2/27. My mid FICO was 639 but I had recently paid off a car and some tax leins that were still being shown on my credit report and I had a few accounts that I needed to take the dispute comments off of. After I sumitted the paperwork showing those accounts and liens paid in full and the dispute comments removed a rescore was submitted. I finally got the rescore back yesterday 3/23 as 641. Exactly what we needed, according to my LO. He submitted our application to get a pre-qual today to USDA and it had to go for a manual underwrite. Will I get denied even though my score is above the minimum? I have two car loans paid off, paid perfect. A current open car loan, almost a year. My payment history on open accounts is 100%. I do have one account that was charged off for $921, an old Fingerhut account from when my wife lost her job. I can pay it off but my LO told me not to. I have a couple of other accounts that were charge offs from a while back but all are paid off. I have 5 credit cards, all paid perfect. One is a $6k limit with $800 on it that I'm an authorized user on; One is a $2k limit with a $32 balance, One is a $2k limit with a $700 balance, One is a $500 limit, zero balance; one is a $500 limit with a $30 balance. My car payment is $431, about $20k balance. That's all I have. I have about $42k in my 401k, and only about $1k in my savings account due to having paid off my other car and tax liens. We are just very anxious and hope we dont get denied. If we do, maybe we can do FHA? I think they have easier requirements? We are wanting to borrow around 150k-175k and build a new construction home. We do own a mobile home thats really old that we let my brother live in rent free. I know there is an owner occupied restriction that wont let you buy a house if you own a house locally? I hope that just means have a nother mortgage? The mobile home is paid for but the title is in my name. Thank you for any info!
