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USDA LOAN- Alabama.... will I get Denied?

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Anonymous
Not applicable

USDA LOAN- Alabama.... will I get Denied?

I'm trying to buy a house and I'm going through USDA Guaranteed loan... my yearly employment AGI IS 39K and I receive 6K a year in child support . I was pre approved for 140K which the house I'm wanting is 138K . I'm worried about getting denied for USDA underwriting for DTI. My lender also stated that I had no margin for anymore debt. How strict is USDA underwriting? She just sent my file to underwriting... how long does it usually take to hear anything? Somebody please ease my worrying!!!

Debt-
521$ auto

Credit cards-
Capital one limit -4500/ 0$ balance
NFCU limit -17900/ 2500$ balance
Barclaycard -2500/675$ balance
Walmart -1500/0$ balance
Overstock -2200/0$ balance

Credit report negatives
EX/EQ- 2 student loans with 0$ balance but late 120+
EX- charge off auto 0$ balance
EQ- student loan collection with 0$ balance

Mortgage scores
TU-745
EX-695
EQ-671
Message 1 of 6
5 REPLIES 5
Gmood1
Super Contributor

Re: USDA LOAN- Alabama.... will I get Denied?

You'll most likely be fine. This post should be in the mortgage section. You'd get more feed back in that section.

My loan went through within a week, once all the paper work was submited.

Message 2 of 6
CreditMagic7
Mega Contributor

Re: USDA LOAN- Alabama.... will I get Denied?

It's been awhile but some years ago before getting serious on building a CC profile i didn't even have a single CC to my name, only assets + modest income and they blew my doors off issuing an approval for a home. Of course it wasn't much but it was in line enough with some houses that they had available at the time on their own bulletin board.

 

At the time they told me something about their score requirements were low but they culd work around that part and mine was about as low as it could go and i still got approved. I let that one expire and when i tried again about a year later they told me some things had changed with requirements but seen no reason why they couldn't appove again.

 

That being said, yours looks more than ideal for a USDA approval and i wish you all the best that it will go your way on that.

Message 3 of 6
Anonymous
Not applicable

Re: USDA LOAN- Alabama.... will I get Denied?

Just make sure the house is in perfect condition. Here in Smalltown USDA is great for brand new houses but that is all that will pass. Here no repairs can be needed or escrowed.  FHA is easier and with 203K  you can get new paint,carpet and appliances  Many larger lenders have direct endorsement and call pass/fail very quickly

Message 4 of 6
Anonymous
Not applicable

Re: USDA LOAN- Alabama.... will I get Denied?

Thanks guys! Y'all made me feel a lot better... I'm hoping everything goes smoothly... maybe I'll hear something next week...
Message 5 of 6
Anonymous
Not applicable

Re: USDA LOAN- Alabama.... will I get Denied?

Usda guaranteeed is underwritten by your lender and then essentially rubber stamped by USDA unless is it one selected for full audit to make sure the lender is complying with the rules for writing USDA loans. You will want to follow all advice from your lender, if she says no margin for debt that means no margin. It is 29/41 for USDA guaranteed. That said many lenders are not as familiar with USDA guaranteed as they are other loans so we were lucky to know the handbook inside out and keep everything on track with ours.

FHA was far more difficult as far as passing inspection on our first home.

This home was normal buyer inspection and apparaisal. This how is not new (90s) but is clean and maintained.

Message 6 of 6
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