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USDA Direct Loan SC

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Anonymous
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USDA Direct Loan SC

I would like to to document my journey with the USDA Direct Loan Program. I sent in my pre-qualification application on April 10th. I have an hard inquiry on April 16th. On April 17th I received a call from USDA processor. She informed me that my TU score was 643. I have one closed collection account and one charge off from 2009. I also have student loan in forbearance until May 15 2015. She told me that I was invited to send in a formal application. I sent in my formal application on April 22nd. On April 24th the USDA sent my employer and my landlord verification letter. It seems like this process is moving very fast. I have read so many post where it took weeks for an application to be reviewed, I hope this process will continue to go smoothly. I'm very nervous about about a recent collection account that showed up on all three of my credit file on April 24th. The collection account is from a credit card from 2009. A debt buyer has purchase the account and list on my credit report as a new account. I have dispute the collection account with all of the credit bureau but I feel that this may cause my application to be denied. I don't know what my next move should be. Any advice is welcome.
Message 1 of 55
54 REPLIES 54
Anonymous
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Re: USDA Direct Loan SC

It's great that everything's moving along so quickly for you. I'm under contract for a house through USDA Direct in Virginia & if I were in your shoes, I'd call my USDA Specialist first thing in the morning. Ours gets into the office at 7am, so that's when I need to call if I want to get her before she leaves for inspections. It won't hurt to tell him/her since they'll see it eventually anyway. Maybe a simple letter of explanation will satisfy them. Best of luck to ya!

Message 2 of 55
Anonymous
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Re: USDA Direct Loan SC

Congratulations!!!! Thanks for the advice. I'm going to call USDA specialist first thing in the morning. I find it strange that old account would all of sudden appear on my credit report during the same thing I'm a applying for a home loan. I will keep you all posted, fingers crossed.
Message 3 of 55
Anonymous
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Re: USDA Direct Loan SC

That kind of thing seems to happen fairly regularly. If you haven't already, root around the forums & read what others have done when stray credit issues pop up during the mortgage process. I'm looking forward to the update after you speak to your specialist!

Message 4 of 55
Lemmus
Established Contributor

Re: USDA Direct Loan SC


@Anonymous wrote:
...I find it strange that old account would all of sudden appear on my credit report during the same thing I'm a applying for a home loan. 

https://www.optoutprescreen.com/?rf=t

...the predators buy reports from the CRAs of all new mortgage applicants, then dig up anything and everything they can find that might even remotely apply to your name ...they know that you will be pressured by the lenders in most situations to "resolve" the issue ...even if its not yours or not correct ...scumbags, one 'n all Smiley Mad


Helpful Links: Do I Qualify? | Mortgage Calculator | USDA Mortgages | Opt Out | FICO Versions
Last HP: 11/04/15 | myFico 3B Jun 10 '15:FICO8 EQ - 752 | TU - 763 | EX - 750
Message 5 of 55
Anonymous
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Re: USDA Direct Loan SC

Wow, that's crazy. I hope that old credit card account don't mess up my chances of getting a mortgage approval (USDA Direct Loan). Thanks for the information.




Message 6 of 55
Anonymous
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Re: USDA Direct Loan SC

I was able to talk to the USDA specialist today. I will be fine if my middle credit score is 640. They have received my employment verification; now I'm waiting on my tri-credit report. I praying that it comes back with a 640 credit score.
Message 7 of 55
Anonymous
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Re: USDA Direct Loan SC

Just to touch on the collections showing up.... Opt out of prescreened offers BEFORE you apply for a mortgage of any kind. Just google opt out. It takes 10 seconds to do, and 5 days to kick in. That way the nasty guys wont see whats going on. You can reverse it in 10 seconds once the keys are in your hands.

Message 8 of 55
Anonymous
Not applicable

Re: USDA Direct Loan SC

Thank you pfarro1, I just opt out of the pre-screened offers.   I just wished I knew that sooner.  My credit report has been pulled for the formal mortgage application, I am now just waiting for a response from the USDA Specialist.

Message 9 of 55
Anonymous
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Re: USDA Direct Loan SC

Hey everyone. I just got an update on my application. My credit score is 645 611 and 545. Making my middle credit score 611. I have one collection from 2009 and 2010. I also have medical collections but that was due to an accident. I have been on my job since 2001 and I have a good rental history (that should count for something). It's now at the loan officer's desk, I am so scare that they are going to deny my application. I need some advice.
Message 10 of 55
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