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My turn for a "will I qualify" post

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jzsnow
Frequent Contributor

My turn for a "will I qualify" post

We want to go usda.

1 collection from 2007. Updating monthly. $236
3 charge offs from 2007. 0 balance. Sold off.
Tons of lates on student loans....many 120 days. Last late was 13 months ago.

12 month positive history on installment loan.
8 months positive history on cap one
Positive on student loans, but they were just sold to a new company, again, last month.

Income 59k. Student loan payment on IBR is $9. No other debt.
Looking at 175k max, taxes are about $700 a year on that house cost.

Credit is between 620 and 640. I just paid utilization down to 9% and one collection I did a PFD and is coming off next week.
Message 1 of 5
4 REPLIES 4
206captain
Valued Member

Re: My turn for a "will I qualify" post

I'm in nearly the same boat...

 

2 CO's from 2008

1 unpaid medical CA from 2010 $3000

Tons of lates in 2008, none for 18 months

 

$53k income, midscore 637 and just got USDA pre-approval no problem.  My LO said that worst-case, USDA conditions basically mirror FHA.  In most cases, it's a little more lienient.  All down to UW discretion in the end, but he said I fit the bill so I assume you would too.

Message 2 of 5
jzsnow
Frequent Contributor

Re: My turn for a "will I qualify" post

Well that is encouraging!

Anyone else want to take a stab at it?
Message 3 of 5
jmoore87
New Contributor

Re: My turn for a "will I qualify" post

I'm right there with you. 3 charge-offs from about 2010, all paid but settled for less than full. I've got an open collection for $1700 that is not reporting to the CRAs. June's ScoreWatch says 631. I'd like to get pre-qualified soon, but can't sell my house (underwater). Looking to rent it out but must seek approval since New Hampshire housing Finance Authority stipulates that properties must be owner-occupied. For me, I think the big decider is going to be DTI ratio. Since rent for my current property would not be able to count as income, I'd have to qualify with both payments. On my salary alone, I would be within the limits for up to a $170k house. If I add my wife, whose credit is worse than mine, our DTI would allow up to $270k. Need to work on her credit a bit so that we can both apply.


Starting Score: 614
Current Score: 643
Goal Score: 700


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Message 4 of 5
206captain
Valued Member

Re: My turn for a "will I qualify" post

Another hidden benefit in all this is that one of USDA's qualifications stipulates that you must be inelegible for a conventional mortgage, whether that is due to your downpayment available or marginal credit.  So with scores above 620-ish, and good recent history with maybe a few old blemishes, it's actually tailored for you in a way.

Message 5 of 5
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