Mortgage Loans

[sharpeboy33]

hello all,,

i am needing help finding if i would qualify for a usda guranteed loan. (orginally purchased may of 2007) my husband has a middle score of 655 but a repo back in 2010. we had a lot of mechanical problems with the car and we did manage to get a service report from the dealer ship. (we owe 11,872) We were told by the realtor to write a letter of explanation so she can submit to the underwriter to see if it would be a problem before doing the application. Well he has been on his job for 11 years and have no late payments more than 30 days showing on his account. He has two open accounts that are in good standing.. credit card with 0, installment loan 700, and the rest are closed but has been paid off. they are about 4 years old. there is one other recent one for funiture that was paid off last year in jan.....can someone please tell me if we have a chance or will this car stop us. experian 715 equifax 655 transunion 630 ...thanks

[sharpeboy33]

can someone please reply and help me...thanks

[Nati]

I am going to say yes that will probably keep you from being approved. In their guidelines it says they wont consider you if you have an outstanding collection with no payment arrangements. I believe I have read they will looke the other way on balances under 1,000 but I dont think they will on almost 12k 

[hopefulKT]

You said that you have no late payments more than 30 days--so does that mean you have some 30 day lates on your report? If so, how recent? The car loan will definitely hurt your chances; my understanding is that any baddies over $1,000 must be paid off or you'll at least need a payment arrangement. That's USDA guidelines; but, lenders have established their own, which can be stricter. 

[sharpeboy33]

thank you for the respones. I have no bad debt on my credit but the repo..There are 10 things showing pays as agreed with no late payments....only two are open accounts. that is my credit card with zero balance and never late...my last installment loan with 700 balance and never late. i have a kay jewelers,2 time finance,3 cornstone, 2 aarons, capital one, friedmans jewelers, and one other loan but cant think of it right now. they all have been paid off with payment never being late. like i state before i never was late on the car either but that is what damaged the credit. the fact that i wrote a letter of explanation and my score being over 655 wont help me? the fact my husband been on his job for 11 years wont help either? im beginning to be really worried now and i have a credit reference from new car cause i bought it from a buy here, pay here place. i never missed a payment on that.

[Shogun]

It depends on the UW.  They tend to not like any possibilities of collections such as the repo.  Is there an amount showing for the repo that is unpaid?  This would be the only problem I can see with it.  

[lucieprequalifies]

If you have had any lates in the past year, it will be a problem for the underwriter to approve your USDA loan.

[sharpeboy33]

Okay....Good news underwriter is going to look past repo letter of explanation and service request. Now just waiting to see if the underwriter from investor is going to approve. what do you think?

[sharpeboy33]

I have no late all on time bills.