USDA Guaranteed approval process?

[Anonymous]

I was wondering if anybody sees why the USDA would not give their stamp of approval on info...

-663 Median score.
-No late payments in the last 14 months (on student loan); no lates on rent..ever.
-no open collection accounts.
-2 open charge offs that are over 3 years old ( 1 for 1800 and 1 for 800).
-well under the 29% on the front side and about 37% on the back.

[Erusidhion]

    From the research I've been doing on USDA in the last 3-5 days I think it's up to underwriting to make the charge offs a condition of approval. Other than that it looks like you'll be good to go. You really won't know until you apply and it hits underwriting or you get a good lender who knows the USDA process 100%.

    I wish you the best of luck! I'll be going for a USDA Guaranteed Loan myself in 2016. This will be a very scary thing for me as I hate commitment. 30 years. It'll be an interesting experience I'm sure. Only thing I recommend is don't buy more house than you truly need. I will probably be looking around 60-80k myself that way if something ever happened I should be able to scrape together $300 a month to pay my mortgage at least. With all these foreclosures/short sales in my area; I should be able to find a recently built house. Not having to worry about redoing the roof or HVAC unit would be awesome.

    Good luck to you!

[Lemmus]

...the charge-offs would require PIF by USDA if not med related ...but the lender may have overlays above those of USDA, many do

...and don't forget to include insurance and taxes in your DTIRs, not just P&I

...I'm under contract for a USDA loan on a short sale ...the problem is not with the lender or the USDA but with the bank that holds the current mortgages

...they have to give written approval of the sales price and have 90 days to do so ...its been 22 days and counting so far since the seller signed the contract

,,,the property we're buying is a dream for us even at 3x the price so we're sweating it out ...hth

[Anonymous]

I have 1 charge off. Purge date is 7/2015. Few months away. I even have the 1099c on it. LO said to give him the 1099c and it should be fine. Anyone do that as well?

[Lemmus]

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@Anonymous wrote:

I have 1 charge off. Purge date is 7/2015. Few months away. I even have the 1099c on it. LO said to give him the 1099c and it should be fine. Anyone do that as well?

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...if the purge date is 7/2015 you can call the CRs and ask for early removal ...TU and EX are usually compliant, EQ can be harder but they just removed a 7/2015 purge on my report early this month ...it was my last neg and score jumped 70 points overnight ...you lose nothing by trying ...and success with 2 out of 3 can make a huge difference in your mid score ...hth

[Anonymous]

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@Lemmus wrote:

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@Anonymous wrote:

I have 1 charge off. Purge date is 7/2015. Few months away. I even have the 1099c on it. LO said to give him the 1099c and it should be fine. Anyone do that as well?

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...if the purge date is 7/2015 you can call the CRs and ask for early removal ...TU and EX are usually compliant, EQ can be harder but they just removed a 7/2015 purge on my report early this month ...it was my last neg and score jumped 70 points overnight ...you lose nothing by trying ...and success with 2 out of 3 can make a huge difference in your mid score ...hth

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Does it have to go through a dispute or they do it over the phone? That is my concern. How did you get them to do it early? What did you say?

My low score was 689 and high 719 (forget middle).

[MsDarby]

I am also looking into a USDA Loan. I spoke with one of the credit counselors and she stated that having a 640+ median score and 3 tradelines that you have been paying on for 12 months is sufficient for an approval. If you do not have 3 tradelines but a 640+ score then they will look at alternative credit like insurance and daycare and rent. If you have 3 tradelines but less than 640+ median score, then they have to go through your credit file. 

I have 2 CO on my account. One coming off this year an the other I wrote to receive a PFD. Nothing back yet. We will see though. 

[Anonymous]

USDA has no min score. Your lender does. USDA is just the insurance. Unless its USDA direct..

[Lemmus]

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@Anonymous wrote:

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@Lemmus wrote:

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@Anonymous wrote:

I have 1 charge off. Purge date is 7/2015. Few months away. I even have the 1099c on it. LO said to give him the 1099c and it should be fine. Anyone do that as well?

---

...if the purge date is 7/2015 you can call the CRs and ask for early removal ...TU and EX are usually compliant, EQ can be harder but they just removed a 7/2015 purge on my report early this month ...it was my last neg and score jumped 70 points overnight ...you lose nothing by trying ...and success with 2 out of 3 can make a huge difference in your mid score ...hth

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Does it have to go through a dispute or they do it over the phone? That is my concern. How did you get them to do it early? What did you say?

My low score was 689 and high 719 (forget middle).

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...you're not disputing anything ...just asking the CRA, not the CA, to remove the negative a bit early ...search the Repairing Credit forum for examples of "early removal" success, there are a lot of them ...in my case, EQ just up and removed it on their own to my surprise and delight ...I didn't ask them why ...try not to poke the devil, eh 

[Anonymous]

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@Lemmus wrote:

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@Anonymous wrote:

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@Lemmus wrote:

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@Anonymous wrote:

I have 1 charge off. Purge date is 7/2015. Few months away. I even have the 1099c on it. LO said to give him the 1099c and it should be fine. Anyone do that as well?

---

...if the purge date is 7/2015 you can call the CRs and ask for early removal ...TU and EX are usually compliant, EQ can be harder but they just removed a 7/2015 purge on my report early this month ...it was my last neg and score jumped 70 points overnight ...you lose nothing by trying ...and success with 2 out of 3 can make a huge difference in your mid score ...hth

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Does it have to go through a dispute or they do it over the phone? That is my concern. How did you get them to do it early? What did you say?

My low score was 689 and high 719 (forget middle).

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...you're not disputing anything ...just asking the CRA, not the CA, to remove the negative a bit early ...search the Repairing Credit forum for examples of "early removal" success, there are a lot of them ...in my case, EQ just up and removed it on their own to my surprise and delight ...I didn't ask them why ...try not to poke the devil, eh 

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Ill call tomorrow. Thank you!