usda direct loan

[Anonymous]

has anyone been approved? if so how was your credit..

[Anonymous]

Hi,

I got approved for USDA direct. I was able to fix my credit some by paying off old collections, having some deleted etc.., but my score was really low. I had to wait 6 months after paying off collections before applying. But they approved me anyways regardless of my score because they saw how hard I had worked on my credit and the new credit I had established was perfect, no lates & more than 1 yr old. Good Luck!

[Anonymous]

thanks for the reply.. i had 2 collectons that fell off last month ..and i have no open credit i do have a capital one card i am waiting to report, my 2 fico scores are 630 625 on this site ...i hope the credit card gives me a boost.

[Anonymous]

I,ve been trying to get this loan, but told by USDA that i only have 1 score showing from tri merger,which is above 640,and prequalified me,yet at the same time would not approve the loan unless i paid off a 6 year 9 month old collection . which i also know if i do pay it off then i cannot qualify for the loan until 6 months after the collection is paid. I was initially told that the collections would not be an issue as long as i paid off the judgement. Yet still they are denying the loan for a collection that is not been made within the past 12 months......... i also explained to them that if i do get collections removed and the credit score goes up ,then wouldnt you technically qualify for a conventional loan and disqualify you for a USDA loan,catch22 eh lol

[Anonymous]

Oh,and BTW i was supposed to qualify for a 1% loan yet the loan was prequalified for 66,000 at 1% with payments of over 500.00 per month...not a math wizard but that is not 1% .

[Booner72]

Hi Phill -- So your collection was almost 7 years old, and they said that you had to wait six months from when you PAID it?   not from when it was reported?

I am trying FHA and what I've been hearing is that I need 2 years from any collections Reporting - as some were 2006-2008 that I just paid off last month.

HHHMMM.  Hopefully Shane or Dallas will come along and fill us in.  Scary.

Boone

[Anonymous]

I was recently approved for a USDA direct loan.  My credit scores at the time of approval were a TU 714, EQ 640, and EX 675. 

[ShanetheMortgageMan]

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@Anonymous wrote:

I,ve been trying to get this loan, but told by USDA that i only have 1 score showing from tri merger,which is above 640,and prequalified me,yet at the same time would not approve the loan unless i paid off a 6 year 9 month old collection . which i also know if i do pay it off then i cannot qualify for the loan until 6 months after the collection is paid. I was initially told that the collections would not be an issue as long as i paid off the judgement. Yet still they are denying the loan for a collection that is not been made within the past 12 months......... i also explained to them that if i do get collections removed and the credit score goes up ,then wouldnt you technically qualify for a conventional loan and disqualify you for a USDA loan,catch22 eh lol

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The reason they are requiring the collection to be paid is because with only 1 score your loan has to be manually underwritten and non-medical collections need to be paid in that situation, no matter how old.  Direct probably doesn't even have a $ threshold, if it's $5,000 or $5 they probably require it to be paid on a manual underwrite.  If you had a few scores (as in 3) then the collection may not be required to be paid off.  If you have a 640 score on 1 bureau, I don't imagine it'd be very long for you to get the other two, from what I read all you need is 6 months of recenty activity reporting on a trade line to generate a score, so worst case is you should just be 6 months off from doing that.  Unless you have a 20% down payment stored up USDA doesn't consider you being able to qualify for a conventional loan.

[Anonymous]

thanx for the reply ,The strange thing i find is i can get all three credit scores equifax 665,experian652,transunion 670 ,yet the usda people can only get one. Logically i think the only reason they get only 1 is because one of the companies i did get credit from only reports to 1 not all 3,so if they had all three would be showing. I had someone explain and i have seen on the net that lenders use a different credit score program than one you can get online,so that is why they dont show for usda but do show for me when i purchase them . And quite frankly when home sales sites advertise check your credit scores ,knowing your not going to get the scores lenders are going to get, then why tell people to check when or if they aren't authentic scores?  . Also it hurts us because the only way we can know our TRUE scores is get a hard credit pull which lowers our scores . sigh there needs to be a better system whereby the consumer can access credit scores without damaging their credit. 

[Anonymous]

Also the collections i have ARE medical..........so i dont understand?