aggravated and disappointed with usda

[Anonymous]

So i applied for a usda loan and was denied what a suprise NOT> i have been working on my credit for over a year now trying to recover from 15 months with out working we bought a van got 2 small loans and an account with a furniture store. have made every payment on time my score has raised but i still have 4 negitive accounts should i pay them off?  should i get  more credit im just lost i called the guy at the usda and he was a complete jerk.

[Anonymous]

It depends, what are your credit goals? What are your FICO scores? 

If you already have open and active accounts, applying for more credit is not going to improve your circumstances.  But if you tell us what your FICO scores are and what your goals are we can better assist you.

[bruiseviolet]

USDA is not that easy to get approved for.  My sister recently went through the process.  She had to have all her collections paid off for 12+ months, and any medical collections she had to prove why they went to collections etc...  No late payments on anything for 24+ months, and she had to put what the mortgage payment amount would be for 18+ months into a savings account. 

[Guava]

If you still have unpaid derogatives, I think it's best to send a pay for deletion letter to whatever company is reporting your debt on your reports.

[thankfulheart]

Why the heck would anyone put that kind of money in savings and not just go FHA and put down 3.5%?  I don't understand all this USDA stuff as the UW guidelines for USDA seem fairly straightforward; seems to be individual lenders who are tacking on the extra requirements, no?

[Anonymous]

what is a pay for deletion letter

[GoodCredBen]

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/PFD-Example-Letter/m-p/4519/highlight/true#M1...

There are examples here

[Anonymous]

my fako score is 593 as of oct 20th my fico pulled by the lender last month was 581 both from equifax.  we have 4 negitive things on our credit one which includes a 4500 dollar repo that is almost 2 years old.  in the positive in which we pay on a timly basis every month is a van payment and 2 small loans which is only about 6-7 months  old. our neg credit is 2 medical bills froom  2007-2009 a cable bill a credit card bill from 08 and a repo. we wanted to go fha but they said they couldnt do it with the repo on there.

[GoodCredBen]

Try your hardest (if you can afford to) to get them to PFD .... 

[bruiseviolet]

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@thankfulheart wrote:

Why the heck would anyone put that kind of money in savings and not just go FHA and put down 3.5%?  I don't understand all this USDA stuff as the UW guidelines for USDA seem fairly straightforward; seems to be individual lenders who are tacking on the extra requirements, no?

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Because my sister is a single mother and with USDA she didn't need a down payment, and she got her interest rate at around 1%.  With the USDA loan program she used- they have it so that if she were to lose her income or something bad would happen to put her out of work- she would be able to not make payments for 2 years- USDA would cover the payments during that time-  and the house wouldn't be forclosed on.  Being a single mother of two- and owning her own business- she decided this was the BEST option for her, to make sure that her family still had their home if something unforseen happened, since she is the only one supporting the family.  (She doesn't get child support or anything.)  While it's not for everyone, I see how it is great for some.  However, she would agree, it's been a pain in the butt to jump through all the hoops.  She purchased her house two months ago, and is still jumping through hoops to get her closing date.  Definately taking a LONG time.