USDA Loan

[Anonymous]

Does anyone know what the guidelines are when applying for a USDA loan in a community property state?  I know with FHA, your spouse has to be included, but I am not sure with USDA.

Thank.

[ShanetheMortgageMan]

For both FHA & VA you do, so I imagine since USDA is a government program you would need to for USDA as well.  I emailed an underwriter to find out for you though.

[BrianB_The_Loan_Professor]

The community property law applies to all loans as far as I understand it.

Good Luck

brian

[Anonymous]

community property laws do not apply to conventional loans, but I do believe they apply to all gov't backed loans which would include USDA

[ShanetheMortgageMan]

Underwriter finally got back to me, said that in community property states the debt payments of non-borrowing spouse are included in the debt to income ratio.

[Anonymous]

I was told that if you had at least a 620 mid score you could automatically be approved for USDA loan even with a BK discharge but my friends can't get approved by any lenders  and their mids are 621 and 625 but their bk 7 was less than a year. Would this be the problem.  I have heard that you have to have 36 months discharge then I have heard that you have to have 2 years discharge. Their income together is about $69,000 with household of three people. The wife just switched jobs but has been there about 5 months but has worked consistently 15 years prior employer. Can anyone shed some light on this? Thanks~

[BrianB_The_Loan_Professor]

620 is not an automatic but the guidelines do say

Recent bankruptcy is OK with FICO of 620+.

Did they say why they were declined? They should know?

brian

[WannaHouse]

The 620 score makes it EASIER to get approved, but by itself is not going to get you an auto approval. Like all of the experts on here have said, the overall picture needs to be looked at.

If they have 620 mids, a BK within the last year or two, some recent baddies, the lenders are not going to feel very good about lending them the money. After the BK, their credit should be just about perfect.

Their DTI needs to be looked at as well.

They need to examine their CR and see what is causing it, and like the previous poster said, what was the reason stated for the denial?

Message Edited by WannaHouse on 01-01-2009 09:20 AM

[Anonymous]

No, I will have to find out but I assumed that it would be due to the recent BK7.

Thanks for your quick replies~

[Anonymous]

Sorry, haven't been on site for a few days. I did find out that they weren't approved due to the lack of credit worthiness. They need to improve credit within the next year so that the bk will be at least 2 years old. Thanks!