07-17-2014 11:26 AM
My husband and I are in the process of purchasing a home with a USDA mortgage. He is the only one applying since my employment is less than 6 months old.
Credit scores: EXP: 653, TU: 687 EQ: 672
Shortsale over 3 years ago.
Last 30 day late over 1 year ago.
No unpaid collections, 1 capital one cc with $1300 limit, multiple store cards, all paid on time for 6 months.
We live in a 2 family house owned by his parents. We have always paid rent, but only have last 6 months paid by check, before that cash.
Broker sent our file to bank's underwriter today and he's asking if we have more further back. Told him no, we paid in cash prior.
Will the lack of 12 months of cancelled rent checks be a loan killer in your opinion?
07-18-2014 03:53 PM
I believe USDA guidelines only call for verification of rent payment if the credit score is below 620. Pretty sure that's what FHA is. Can you show cash withdrawals in that amount from your bank at the same time each month?
07-19-2014 08:55 AM
Unfortunately, no. Some months you can see that we made 2 cash withdrawals (each for 1/2 the rent) but there were some months we paid with cash earned from other sources.
I guess we'll just find out when we find out. The wait is killing us!
07-23-2014 09:52 PM
If you are able to get an approval through GUS then rental history verification won't be needed. Ask your LO if GUS has been run yet. Some loan officers are just cautious and ask for it up front, later to find out that it's not needed... just playing it safe.
07-24-2014 07:55 AM
Interesting - thanks for the update.
I'm going to hijack the thread for a quick question that maybe Shane can answer - what if you haven't been paying rent? For the last 2.5 years I've been living with my dad who has dementia. Moved 800 miles to look after him and my mum who was in end-stage cancer. She passed 3 months later. Since then I've lived with him so he doesn't have to go into a home, but that will probably have to happen soon. I've not been paying rent to him because I'm his primary care-giver. It's allowed me to pay off $10,000 in debt and start saving. Will it matter that I haven't paid rent? I did pay rent July 2010-February 2012 before I moved to look after them. Will they ask for that?
Sorry for the hijack!
07-24-2014 08:26 AM
If you don't pay rent that normally isn't a problem. A small handful of lenders have requirements that previous rental history can be provided, but only for applicants who barely qualify credit-wise. Your scores probably will be good enough that it's a non-factor.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.