09-29-2012 02:19 PM
I recently applied for a USDA Direct loan we make under the max amount for the county (way way under) the area we want to buy in is eligible and I sent in all the correct documents with my application. My question is my credit score is 585 565 and not sure the other one my file is "thin" so I do not have much on it, I recently bought a car where I have to pay on it every week and have made all payments on time so that should help but will my low score prevent us from being accepted?? We are so nervous and this is our only option in getting our own home.
09-30-2012 07:13 AM
Direct is more lenient concerning credit score but that is not the only thing that they take into consideration. Your credit history will have to be clean with a low score. You won't have much wiggle room if any. Here is a link to Chapter 4: Borrower Eligibility from USDA's handbook for single family housing loans. http://www.rurdev.usda.gov/SupportDocuments/3550-1
You may also want to search for Macbook Guy on this forum. He started an excellent thread documenting his experience with the direct program. I believe he mentioned his score was below 600.
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