I have been a long time lurker to the MyFico forums and now I have run into my own question... I was pre-approved for a USDA loan almost 1 year ago. I was able to find a property and get an accepted offer shortly thereafter. We were all set to close, already had the inspection etc. There was MAJOR issues with the HOA (it was a condo) and the sale ended up falling apart. In the mean time I had moved out of my rental and into a roommate situation (because i thought i would be moving in less than 45 days and my lease was up) to where i am not on a lease and just pay cash to my roommate for my part of the rent. Fast foward nearly a year and I am now in the process of a short sale purchase. I have recieved an approval from the first lienholder and am still awaiting approval from the 2nd (currently at 151 days since my original offer was written).
At the beginning of this process when i was preapproved my mid score was a 637. Since then i have had 2 of the 4 negative marks on my credit removed (paid for deletes) and one is at the 7 year mark and should be removed this month. The other I requested validation on about a year ago and never recieved a response or validation so im guessing that should be gone too. I haven't repulled my credit since then but have been current on car payments etc so I anticipate my score to be in the 640-660 range now.
My question is, will the UW @ USDA approve my file without 12 months of cancelled rent checks? My bank statements will show a regular withdrawl of cash once a month to pay it, and my roommate is willing to provide a verification of residence/rental or a written rental agreement between us in order to get this to go.
My other hurdle is the cash i pay her is about $200/mo less than i was paying in rent previously, so I am worried that the UW will see this as rent shock... I can have all my previous landlords verify the rent I paid there was the higher amount, and can prove that i have been regularly depositing the extra $200/month into a savings account towards closing cost, new furniture etc, so I can validate that I am able to pay the higher amount on a regular basis.
I am terrified that I will go through this process of waiting almost a year, paying for multiple inspections/appraisals just to get denied at the final stages. What are my chances of this going through? My LO seems unconcerned but it stresses me out ALOT to think this all might fall apart.
Thanks in advance for your opinions!
As an update I just repulled my credit. My initial credit back in December was Experian 672 / Transunion 634 / Equifax 625... They are now Experian 658 / Transunion 695 / Equifax 651.
Not sure what would cause my Experian to drop so much when all the others went up substantially.. At the time i was approved the Transunion was my midscore, but now it would be the Experian. Not sure why this is happening. Any input would be nice.