USDA Guaranteed Loan and Unsatisfied Judgement

[Anonymous]

I would like to buy a home and take advantage of the USDA Guaranteed loan. I qualify for the loan by all guidlines (income, credit score etc.) I do however have a few judgements from along time ago. 2 have been satisfied and one I am trying to track whether it has been satisfied or not. If I have an unsatisfied judgement is there any way to get a home?

Thanks!

[ShanetheMortgageMan]

The judgment will need to be satisfied prior to closing (not application) on a USDA mortgage.  So you can apply for the mortgage and see if you get approved (provide the satisfactions for the 2 that are), and if so the underwriter should just condition for you to provide a satisfaction on the 3rd one by the time you get to closing on the mortgage.  If you had a payment plan set up for the judgment then after 12 months of on time payments they likely wouldn't require you to pay it off, but the payment on the judgment would be included in your debt to income ratio.

Message Edited by ShanetheMortgageMan on 06-30-2009 07:36 PM