04-13-2009 10:50 AM
04-13-2009 11:53 AM
04-13-2009 12:13 PM
04-16-2009 07:09 AM
So, I had an appointment with a Lender. They get a much more complete financial picture than any of these credit reports we consumers can access! When the lender pulled my husbands credit report, it shows 6 (!!) collections. Equfax shows 0 and TransUnion shows 2 very small collections from what I can access. I am getting a lot of good advice on the Rebuilding Your Credit forum, but I have a question for 'those in the know' regarding what the lender told me.
I still would like to apply for usda guaranteed loan (just a little bit later than I had wanted). I have the funds to take care of four of these collections, which I hope to PFD. But the lender stated we must pay all collections in full before we come back to him. From what I read about these guaranteed loans, if your score is over 620, the underwriter can overlook other collections. So which is right? If I am sucessful in removing four of these collections, and it does in fact bring his score over 620, (big if, I know) should I go elsewhere or will I just hear the same thing again?
04-16-2009 09:31 AM
USDA does NOT have a minimim credit score it just gets you smooth sailing if you have over 620 Chase bank is who we used with Homestar Mortgage as the broker. ALSO I had one small collection but my hub had an $800 CO from verizon only a year and a half old. Granted we had 660 and 690 as mid scores but I think the lender you talked to is the one wanting you to pay those things off not the USDA people.
If you google "chase USDA info" there is a thing to click that says "broker forms set". This is what the broker uses it has what they require as far as credit and other qualifications. (I am sorry if this is somehow against the rules to write) It really helped me feel good about our pre approval. most USDA lenders care about is bad stuff within the last 12-24 months
04-17-2009 09:40 PM
It is your lender that is requiring that. Go elsewhere. We are also going through Chase and they did not say a thing about our collections. I have 5 medical collections. Our scores were 622 and 635 mids when we started this.
We are actually going through a mortgage broker, but Chase should be good as well. A broker can find the best lender for your situation.
Good luck! (We close in less than 2 weeks!!)
We are finally homeowners!!
Closed May 5th-30 yr fixed at 5.25%.