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USDA Direct 502 Now I wait and wait

Valued Member

Re: USDA Direct 502 Now I wait and wait

Do you have any accounts in good standing on your credit report? I highly suggest reading through the USDA handbooks and learning their processes, if you haven't. It helped guide me in knowing what I needed on my credit report to offset the negative items. And sometimes you have to show them their own guidelines or ask for a waiver. Hoping things go well for you in the future. 

Message 11 of 15
Established Member

Re: USDA Direct 502 Now I wait and wait

Yes I do I have 2 credit cards and an auto loan current and in good standing. I think next week I will start looking into what are my best options for my credit history. Another thing is I didn't include my husband as an applicant because he doesn't have a work history he has only been legal in the country for 4 months. I added him to my cards so his credit is at 715 on all 3 bureaus. Do you think he could apply with his credit only and use my income even though he technically doesn't have the work history?

Message 12 of 15
Valued Member

Re: USDA Direct 502 Now I wait and wait

If you live in a community property state, then they will look at the spouses income but also their credit. The 2 credit cards and the auto loan - do they have at least a 12 month history of on time payments? The collections - how old are they and were they beyond your control?
Message 13 of 15
Valued Member

Re: USDA Direct 502 Now I wait and wait

Here's what the handbook says about collections:

C. Resolving Collection Accounts
Paying an outstanding account is not, in itself, justification to say the applicant has demonstrated a willingness to meet obligations. Payment of a collection account could deplete the applicant’s cash resources that could be used for reserve or closing costs. The Loan Approval Official may determine it is not necessary to pay a collection account if there is evidence that the account does not affect the Agency’s first lien position. If there were extenuating circumstances to the adverse credit, the Loan Approval Official may determine that the late payments are not reflective of the applicant’s ability to meet financial obligations or manage debts. All extenuating circumstances and any compensating factors must be documented on the Credit History Worksheet.
Message 14 of 15
New Contributor

Re: USDA Direct 502 Now I wait and wait

What type of collections? I had a few medical deleted using the hipaa process. You'll have to Google it since we can't talk about it. Sorry to hear. My husband had a low 500 score I got up to 670 in 2 months just by paying down credit cards and taking care of medical collections. You might be able to get approved sooner than you think.
Rebuilding towards a mortgage. BK7 Discharged 3/15.
2/4/16 3/11/16
Husbands Fico8: EQ 610 658 My Fico8: 586 634
TU 586 636 601 631
EX 630 667 626 644
Message 15 of 15