I just called my bank (small local bank) with questions regarding getting a guaranteed USDA mortgage. She said I have to have 3% down and 6 months in reserves. I have gone on the assumption, from this (and the USDA) website that this is NOT the case. This bank does not even do FHA loans, so I doubt she is mixing the two up.
She also said I have to have 3 years of tradelines and a 680 score.
I read on here about people getting great mortgages every day, with lower scores than me and foreclosures and bankruptcies, etc. and every time I call anyplace nothing I am told matches up with what I read here.
I don't want to assume this loan officer doesn't know what she is talking about, but from everything I read everywhere, it sure seems that way.
Any suggestions of somebody in mid-Michigan that I can go to?
Without going into full detail I can say that they are misinformed. I didnt have any thing that you mention they say is required and I got approved. Could be different per state so I can only speak for certain in Ohio
They are putting their overlays on the loan, which means they have tougher standards. Look around, you will find better.
I would definitely try looking elsewhere. These do not sound like the general rules for the USDA Guaranteed Loan. I had looked into trying to get this loan a few months ago and none of the information that you are describing sounds familiar.
Here's a link to a PDF I found for approval guidelines for USDA. Hope that helps you and anyone else!
Thing to remember is just like FHA only requires a 580 score many lenders will put there own requirements on these too. So if the lender says the need a 680 than that lender needs a 680 you can and should shop around. Just be weary not to jump into something if your not ready.
I agree with the growing consensus...you need to find a different lender. Most who work USDA guaranteed loans only require a 620-640 median FICO score. 680, to me, seems excessive given the fact that a USDA guaranteed loan is virtually risk-free for the lender.