topic Re: Allied Home Mortgage Corporation in Mortgage Loans

Help with a USDA Rural Development Loan

Anonymous — Tue, 21 Jun 2011 20:52:49 GMT

Alright, so here is my question. Where do I go to get qualified. I currently have a 620 Median Score with 9% DTI ratio. I make 50k yearly and am a single mother. Anyone know where to go to get qualified? I am looking to be purchasing my first home in approx. 60 days, but need to assure I qualify and get pre-approved before I put in an offer to the seller. I want to make sure I'm ready for the process to begin before it starts. Any advice would be greatly appreciated.

Thank you

Warm regards,

Julie.

Re: Help with a USDA Rural Development Loan

Booner72 — Tue, 21 Jun 2011 23:21:57 GMT

Realtors can often refer you to loan officers - as can your friends that are homeowners. Word of mouth is the best in my opinion.

Good Luck!

Re: Help with a USDA Rural Development Loan

doeblinv — Wed, 22 Jun 2011 00:15:30 GMT

where are you buying? You know it is funny, because I am in same situation, mid score barely high enough, single mom, with 53 k... the lender I am using said a 620 would be fine, but the same company, just different office location, said it had to be a 640!! Same company! SO i don't know if it depends on what the LO wants to do and how hard he is willing to work on your file, but I got two different answers by 2 different LO from the same company in the same city!!! Where are you located? I would just start calling some of them and ask them their min score requirment like I did.

Re: Help with a USDA Rural Development Loan

Anonymous — Wed, 22 Jun 2011 14:09:35 GMT

I reside in Pennsylvania. Trying to purchase a home in the rural parts of Allegheny County. I qualify for the home as I have checked it out on the eligibility site. I just don't know where to go to get qualified without them running my credit at every location. I have already had it pulled by two different mortgage companies two months apart and my CS dropped by 50 pts. I don't know how else to have them give me a direct answer without them having to pull my credit. I am a member of Experian so I know what my credit score is and why/when it drops. Does QuickenLoans.com do USDA loans?

Can you see why I'm stuck in a rock and a hard spot?

btw, thank you for moving my question to an updated forum. I googled USDA rural loans and got the old forum. I appreciate the assistance.

Thank you

warm wishes,

Julie

Re: Help with a USDA Rural Development Loan

ShanetheMortgageMan — Thu, 23 Jun 2011 04:54:27 GMT

First you'll want to ask any lender what their minimum score requirements are. For USDA a lot of lenders require a 640 score, some just require a 620 score. The reason for the 640 score is that credit requirements are a little more forgiving. Second, I'm not sure what is on your report that is bringing your scores down, but for USDA, in general, you'll want to make sure your credit is free of delinquencies for the past 12 months. If you have them, owing collections don't always need to be paid, particularly if your score is 640+ (see the importance some lenders place on the score?).

50 point drop from 2 credit inquiries seem a bit drastic, but I'm not a credit score expert so I'll defer to those who are. But to improve your chances I'd work on getting your scores back up to a 640 and that'll improve your chances.

Third, another big part to qualifying is your debt to income ratio, $50k and a 9% DTI, so you have $375/mo in payments? If so, not sure how much of a house price you are trying to qualify for, I've never actually done a loan in Pittsburgh so I am not sure what to use for property taxes are, but I'd imagine $150k is something your debt ratio could qualify for.

Re: Allied Home Mortgage Corporation

Anonymous — Mon, 03 Sep 2012 00:05:03 GMT

We are getting a USDA loan and I was told I had to get it to at least 640 and just barely managed to.

Re: Help with a USDA Rural Development Loan

Anonymous — Tue, 23 Aug 2011 17:24:22 GMT

I'm just starting my process. First off, try this website...it will give you the email address of the regional housing specialist who can send you an application. And he/she should give you directions from there. Good luck

http://www.rurdev.usda.gov/LA_Home.html

click on the area where you are located or looking to purchase.

Re: Help with a USDA Rural Development Loan

Anonymous — Tue, 23 Aug 2011 17:26:12 GMT

Sorry, wrong website...here you go:

http://offices.sc.egov.usda.gov/locator/app?state=us&agency=rd

Re: Allied Home Mortgage Corporation

llecs — Mon, 03 Sep 2012 00:05:23 GMT

Split post to form a new thread within Rebuilding Your Credit

Re: Allied Home Mortgage Corporation

Anonymous — Mon, 03 Sep 2012 00:05:39 GMT

I might be able to shed some light on the different answers you're getting regarding credit score requirements. The investor (with a USDA Loan, I believe it's GNMA) has a lower credit score requirement then you're lender. The reason for this is because the lender probably doesn't service the loan after it's originated, or if it does may only service it for a short period, then sell it.

When a loan is sold, it's done so on the secondary market, and that's where the higher credit requirements come in. Your loan will be grouped/bundled with other loans that are similar, such as credit score at application, loan amount, term, ect, then sold to a servicer who will service it. Your loan can actually be sold multiple times and will probably end up with one of the big 5 (although, BofA is probably not likely, I've heard they are not purchaseing loans where GNMA is the servicer, but that may be a rumor).

The secondary market is the requiring the higher credit score and because of that, the lender. GNMA loans are difficult to sell with anything lower then a 620 and it's easier to bundle them if the score is above a 640. You may have better luck going to a mortgage company that will not sell it after it's originated because they only have to worry about the investor requirements, not the secondary market requirements. Banks I would suggest, although I can't promise they don't sell on the secondary market, are BofA (currently the largest servicer of mortgages), GMAC, USBank, and Wells Fargo.

Side note, USAA does not sell their mortgages on the secondary market either, but they do not service them either. They contract with larger servicers in a program called "Sub-servicing." Not sure what kind of requirements they would have.

Re: Help with a USDA Rural Development Loan

Anonymous — Sun, 30 Dec 2012 03:37:45 GMT

I'm trying to get a USDA loan but my wife and I are 7,000 over the required limit in my area. Do they average the last 2 years income? Also if my wife stops working what would they look at time wise

Re: Help with a USDA Rural Development Loan

Anonymous — Sun, 30 Dec 2012 18:35:54 GMT

I googled and found a broker for my USDA guaranteed loan. I asked them upfront what the min score was. He said they liked it to be 640 but could sometimes work around a 620. At that time (6 months ago) mine was 620 and I qualified but I had to submit rent checks from the past 24 months, etc before they actually approved me. The deal fell through when the appraisal came back low and the sellers wouldn't budge. I was so disappointed. Out the money for the appraisal, plus I had several new pulls on my credit which did make my score drop some but not very much. I got another credit card 4 months ago to raise my limits plus I paid off all balances on my other credit cards and now my middle score is TU 660 (lender pulled). I'm currently going through this nerve racking process again but at least this time the appraisal has came back good. I also tried calling all of my areas local banks ( I live in a small community). None of the local banks did USDA loans so I didn't have much choice but to rely on Google. I would try asking friends, then calling local banks, then if all else fails, Google. My realtor didn't seem to know anything about USDA loans but others probably do. My realtor tried to convince me to get a conventional mortgage because she said it would be quicker. I didn't/don't have 20% down so I couldn't, she suggested I should just borrow from family, I was like...NO! Good luck!

Re: Help with a USDA Rural Development Loan

Anonymous — Mon, 31 Dec 2012 23:45:14 GMT

The USDA looks at total household income, but allows for deductions for child care, under age children in the home and oop health care for someone who is disabled and I believe elderly. The web site allows you to enter your income and deduct from your income. If you have already done this and are over $7000 there isn't much you can do. They look at the last two years of W2's to get an idea of what your income is and how many dependents you claim, if you own property etc. They also verify your income from your employer (voe) twice during the process and verify your ytd on your pay stubs. If your wife stops working temp her employer will note that on the voe. Is there any way you can go FHA or VA if applicable? If you are having a problem coming up with the down payment you should look into first time homebuyer grants that you could possibly qualify for. However if you are over income for USDA you may find that you are over income for most grants. You can also look into incentives that the banks are offering for closing cost assistance and/or down payment assistance as well as sellers concessions. What area are you buying in?

Re: Help with a USDA Rural Development Loan

Anonymous — Wed, 02 Jan 2013 05:34:45 GMT

I was just recenetly financed for a USDA Rural Development Loan in June 2012. I had a middle score of exactly 620!!! We were sweating bullets all the way to the end. YES, you can get a USDA loan with a score of 620 but there are only a few banks that will do it. I went through a broker and I know that is the only reason I got my house. I would definitely recommend contacting a few brokers in your area and seeing who is experienced in USDA loans.

My lender ended up being American Financial Resources. Like I said I highly recommend going through a broker if you have a low score. I was not charged anything by my broker... he got his cut from the lender : ) I don't know what rates are at now but I was able to get 4.25 % and I was very happy with that. If I had qualified for everything a couple months earlier I could have been in the 3.5% range though.

Good Luck!

Re: Help with a USDA Rural Development Loan

Clemmy137 — Tue, 07 May 2013 16:03:43 GMT

Congrats on your new home Blessed! What broker did you use? I need help immediately.