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USDA - 2 tradelines

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WannaHouse
Valued Contributor

Re: USDA - 2 tradelines


@Anonymous wrote:

I am going through the USDA loan process right now and it is a NIGHTMARE!!!! I have a mid score of 748, credit history of 11 years (car loans, CC's, rent etc) and I make decent money...they are picking apart my loan!! I have had conditions come back MANY times from the underwriter (I lost count).

 

 

Credit score of 620 should streamline you, according to the USDA site. The problem with these loans is the lender is underwriting, I think once you've passed all their tests that USDA just double checks everything to make sure you aren't buying a house with a pool and that you don't make $200K a year.

 

www.rurdev.usda.gov/rhs/sfh/GSFH_Information/Common/quick_guide.htm


 

 

This is probably the bank you are going through. We used Chase and did not have ANY problems.


Kathy


We are finally homeowners!!

Closed May 5th-30 yr fixed at 5.25%.

Message 11 of 15
WannaHouse
Valued Contributor

Re: USDA - 2 tradelines

I also wanted to add that you should always ask the lender if they are familiar with the USDA loans and how many have THEY personally done. It makes all the difference in the world to have an experienced LO.

 

 


Kathy


We are finally homeowners!!

Closed May 5th-30 yr fixed at 5.25%.

Message 12 of 15
Anonymous
Not applicable

Re: USDA - 2 tradelines

I would also search online for their bank's guidelines for underwriting a USDA loan, each bank or brokerage is different with different rules.
Message 13 of 15
pmarti8
Valued Member

Re: USDA - 2 tradelines

The guidelines I read on the USDA website state that they want 2-3  tradelines with at least a year of payments showing.

 

So even if you only have 2  active tradelines open for say 6 months, as long as your credit report shows at least 2-3 previous tradelines that were open for a year or more then you should be fine. 

 

Another question, if you do not have any previous derogs why is your score only a 649? How recent are your two active tradelines? With at least 6 months of on time payments and no previous negative marks your score should be at or just below 700.  Do you have a lot of recent inquiries, high usage ratio?

 

Good luck!

 

P.S.. The USDA "streamlined" process is for credit scores of 640 or above per the AZ USDA rep I spoke with two weeks ago. 

 


Starting Score: 07/2010 TU 541 EQ 593 Exp 529
Current Score:TU 654 EQ 644 EX 594 br>Goal Score:ALL 660 850

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Message 14 of 15
MarineVietVet
Moderator Emeritus

Re: USDA - 2 tradelines


@pmarti8 wrote:

The guidelines I read on the USDA website state that they want 2-3  tradelines with at least a year of payments showing.

 

So even if you only have 2  active tradelines open for say 6 months, as long as your credit report shows at least 2-3 previous tradelines that were open for a year or more then you should be fine. 

 

Another question, if you do not have any previous derogs why is your score only a 649? How recent are your two active tradelines? With at least 6 months of on time payments and no previous negative marks your score should be at or just below 700.  Do you have a lot of recent inquiries, high usage ratio?

 

Good luck!

 

P.S.. The USDA "streamlined" process is for credit scores of 640 or above per the AZ USDA rep I spoke with two weeks ago. 

 


In case you didn't notice this thread was last active almost 2 years ago so you might not get an answer to your questions,

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Message 15 of 15
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