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Usda collection accounts

Established Member

Usda collection accounts

Anybody gotten a preapproval with collection accounts. Total under 2000. This is for usda.
8 REPLIES
Contributor

Re: Usda collection accounts

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. 🤷‍♀️
Established Member

Re: Usda collection accounts


jade1202 wrote:
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.  

Contributor

Re: Usda collection accounts

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.
Established Member

Re: Usda collection accounts


jade1202 wrote:
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.  

Re: Usda collection accounts

Im doing USDA as well. According to my lender, you can't have any lates or colldctions within one year. No charge offs or collections newer then 2 years.
As far as those 9 points you need, do have any credit cards? I'm not trying to get in your business,but if you have any cards over 30% utilization,pay them down to at least 15%. It has been my own personal experience that decreasing each percent will give you about 1 point. There are other factors as well but that's the fastest. Oh, and if you have any open collections (no matter how old) your underwriter may ask you to pay if it's not medical.
Established Member

Re: Usda collection accounts

I have 4 credit cards. 2 have a zero balance 1 has 5% util and the other was at 30 util but I just paid that one down to 20%. Total util is at 2%. And all of my baddies are over 3 years old. All due to job loss.
Established Member

Re: Usda collection accounts

I have 2 open collections that total 1000 dollars.
Established Member

Re: Usda collection accounts

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.