Mortgage Loans

[dciples]

Wondering if anyone out there knows or experienced themselves anyone who has gotten a USDA Rural Housing Loan with a score between 580-600?

[yarbles]

I was just reading their site & read the lowest was 620, but who knows they might have exceptions for certain things.

[dciples]

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yarbles wrote:

I was just reading their site & read the lowest was 620, but who knows they might have exceptions for certain things.

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I read/heard 580 was the lowest.

But specifically I was looking for successful people with a low score like this that went through the program and have closed on the loan. Maybe process of how it went too.

http://www.rurdev.usda.gov/SupportDocuments/CA-SFH-GRHUnderwritingGuide.pdf

[berrios94]

I guess it depends in the State. We are currently going through a USDA loan process in Central Florida, but we were told to avoid ANY issues with the credit approval, we needed to be at 640.

Yes, on the USDA website does state 620, however, if you have a weak credit report, the best bet is to be at 640. We were told that this avoids the USDA underwriter to begin askiong questions with regards to any negative items on your credit report andp lace some doubt. But if you do not have really negative items such as a bankruptcy; very recent collections; reposessions; or liens of some sort, then maybe you'll be fine.

Again you must check with your state as here in Florida we were better off being at 640.

Good luck!! 

[jess985]

Same in Louisiana. We were told 640 can get you through without any issues and that smaller unpaid collections would not need to be paid.