USDA / bk 7 / DTI ??'s

[Anonymous]

Hi There,

 Bankruptcy discharged 7/07, and DTI ratios would be 36% front end/37% back end. Does this sound possible for a USDA loan?

[Anonymous]

It depends on your credit score. I am in the process of going through USDA and they look at all scores but only go by eqifax. If it's less than 620 they go digging. Give it a try and work with the USDA rep they give advice on what to do so you can get a loan.

[Anonymous]

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@Anonymous wrote:
It depends on your credit score. I am in the process of going through USDA and they look at all scores but only go by eqifax. If it's less than 620 they go digging. Give it a try and work with the USDA rep they give advice on what to do so you can get a loan.

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Just to correct this part... they don't go by your Equifax score. They go by whichever of the 3 is the middle score. In your specific case your mid score just happened to be Equifax

[Anonymous]

This info was given to me by the USDA rep who's doing may app. I specifically asked about this and was told they base everything on equifax. My middle score was 630 but because of my equifax score they need my landlord info.

[Anonymous]

Maybe it's specific to that lender. We were approved for USDA and they used my husband's mid score because his was lower than mine. It was his TransUnion score they went by because it was the mid.

[Anonymous]

OK, maybe it's because we went direct.

[Anonymous]

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@Anonymous wrote:
OK, maybe it's because we went direct.

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I don't think that's the case either.  I applied direct and the first pull they did was TU.  The second pull was all 3 with the mid score being used.  I ended up going guarantee though because the loan officer was the underwriter as well and could close me in about 1/3 the time direct was going to take.

At any rate lovelovelove, the BK 07/07 will be fine for guarantee but not for direct.  They require 3 years from discharge whereas guarantee has no stipulation but many lenders use the 2 yr rule which you'd be fine since it's now August.  Scores are what will matter most now and a clean history since the discharge.

Message Edited by jdm72 on 08-03-2009 09:34 AM