I am currently in the process going through with a USDA Loan. I was pre approved for an FHA, but now that it's about to go to underwriting they found I I had to take care of a major collection.
After taking care of it and succesfully having the TL deleted, my mid score bumped to 680. I used down payment money to take care of the collection, so now I'm eligible for a USDA loan. Now we are switching gears and going that route.
I am about to go through the GUS process. My question is, will it get kicked back because I still have two collections and I also have two disputes. My DTI is almost 0%.
From what I have read from the USDA underwriting process, if your score is above 620, collections do not have to be taken care of. Is this true?
Will the disputes hurt the process?
Starting Score: EQ-563 TU-515 EX-578 VANTAGE-609 September 2013 Current Score: EQ-639 TU-627 EX-625 VANTAGE 662 Goal Score: 700 All Around