Mortgage Loans

[Snappy1122]

I would like to apply for a USDA guaranteed loan in the very near future.  My current credit score is around 680 and my husbands credit score is 621.  From what I have been reading a score of 620 is where we need to be.  My concern is that one hard pull could drop his score below that goal if they pull his credit more than once.  Would we be better off waiting and pfding what we can first?  Or am I being over concerned and its safe to drop off our required paperwork with a lender?

[Snappy1122]

I should also add that I have been working on our credit since last July.  I have paid all our current credit cards down to 0 balance (yay!)  and I have been sucessful with a few gw's and pfd's.  All of my husbands 'baddies' are all over 4 years old and paperwork/information is hard to come by. I did send you a pfd just yesterday, but I really am running out of things to do to increase his credit, except time, but I am very anxious to move forward and be a first time homebuyer in this current market!  The last time I was able to check experian (in february) his score was 621, equifax is 621 and transunion is 600.  I even stooped so low as to check his current experian FACO today which is 631. 

[teacherhere]

I think I would take your printouts of your latest credit report and credit scores to a loan officer and tell them what you want to do and let them tell you how to proceed.

[Snappy1122]

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?

[mamasan]

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

[WannaHouse]

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!!)