Ok, here's a rundown of my experiences so far with purchasing a home with a USDA guranteed loan. I'm located in rural east Texas. Started looking at a mortgage in early December of 2010. My fico scores were TU 606 and EQ 602. I got one baddie removed via DV letter. (Sent out 4) Also, I opened a secured credit card thru Capital One. (I had no previous revolving credit.) My scores are now TU 674, EQ 649, and EX 675. (lender pulled Mid Feb, 2011.) I was pre-qualified on Feb. 17. Looked at 5 houses in one week, made an offer on one that was far and away better than the others. Sellers accepted our initial offer (plus $800 for leaving their new fridge, it's a nice one!) and agreed to pay all closing costs. Ispection was done within a week and the USDA apprasial was done not long after. Everything went so smooth. Made it thru the lender's underwriting last friday (march 3) and was submitted to the USDA for commitment. This morning I recieved a call from my LO telling me USDA had already gave the go ahead and we could possibly close this week, however our original close date is march 21, 2011 and the sellers are occupants of the home. Probably not going to be able to close early due to the sellers not expecting to or having enought time to move yet. Anyways all in all it's been a pretty painless experience. My LO has been great!
Just a note: I have three collections reporting, aswell as charge-offs, all of which are over 4 years old. Also two of the collections have dispute comments from the DV letters I sent out. None of this was a problem with underwriting. My employment is great, DTI is great, credit is mentioned above. Without this forum I'm not sure I'd have been able to accomplish my dream of being a homeowner. Thanks to everyone, and if I can answer any questions, I'd be happy to help.
Starting Score: 500’s