My husband and I have low credit scores mostly due to a lack of trade lines. We do have a few small items that we need to pay off, but they total less than $600 and we'll be paying them off with the tax return within the next few days. My husband's mid score is 587 and I'm not sure what mine is at this point. Because his mid score is so low, we were turned down when we tried to get pre-qualified for a mortgage today.
My question is: On the USDA website under eligibility requirements for the 502 direct loans it states: "Applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories." http://www.rurdev.usda.gov/HAD-Direct_Housing_Loans.html
This is so confusing to me because I've read on several other threads on this forum that even if USDA has a low credit requirement, the bank/lender will probably have a higher requirement. I just don't know where to go from here. I e-mailed the USDA Service Rep in our area and I'm waiting to hear back from her. I won't get my hopes up...but I was hoping that someone could clarify. Also, do you think the USDA rep that we work with will be able to direct us to a lender who can/will deal with our lack of credit?
