USDA loans, judgments, collections and charge-offs

[lundungurl]

Hello all,

I am wanting to apply for a USDA rural loan (either direct or guaranteed) before the end of the year. I have been working on repairing and rebuilding my credit. I have 2 judgements and an overpayment for unemployment.

The judgments are as follows: 1) paid in full and satisfied in 2007. 2) currently paying will be done in a couple months. 3) listed as state tax lien but is actually an overpayment from unemployment. This happened in 2005, was filed in 2006 but was just paid a couple days ago

I also have some older collections and charge-offs. I guess I am wondering what the requirements are for qualifying. I have heard you need to have all judgments satisfied for a year and no late payments for a year and no new collection activity for a year. Is this pretty accurate? Also, do ALL old collections and charge-offs need to be paid or is there a time frame that I should focus on, like take care of anything that's less than 2 years old?

I would like some input on different people's experiences. Thanks so much!

P.S. I live in Oregon if that helps

[Booner72]

The judgment and collections do not have to be paid for a year.  We paid ours just a couple months prior to closing.  It's no new derogs such as late payments, collections reporting, etc. that falls in the 12 month window.

[lundungurl]

Hi Booner,

were all your past collections paid of though? Or did you just make sure you didn't have anything recent reporting?  Also, what bureau did they pull from and what was your score when you were approved?  Did you get the direct or guaranteed loan? Thanks

[Anonymous]

I had an open judgement and two open collections. Had to pay them and got the approval