I've read as long as they're more than a year old, or it's been 6 months since they were paid and less than $2,000 under Usda guidelines that qualifies... but we could not get pre approval and we fit every single qualification listed in the handbook. 🤷♀️
That is exactly what I read. And i do too. But i'm currenly in underwritting to get preapproved and was wondering if anyone has ever actually gotten through with collections under 2000.
Is it for the direct program? If so, you can't have any unpaid collections if you have less than a 640 score. The handbook says no new collections within the last 12 mos, but you cannot have ANY unpaid collections if your score is below 640. If you have a 640, your collections don't matter, it's automatic approval.
No i'm applying for the guranteed program. I'm almost to 640 too which is unfortunete that i have to go through manual underwriting and jump through these hoops over 9 points. That 9 points isn't going to change my credit decsions. I have bad credit because of a job loss 6 years ago. And it has taken this long to rebuild.
I was not able to get approved for a loan. They said my Student loans did not count as trade lines. I have to wait for one of my credit cards to age another month and have a dispute comment removed.