topic Re: USDA help in Mortgage Loans

USDA help

MarcPA — Wed, 13 Feb 2013 23:49:40 GMT

I am looking at a guaranteed loan. I meet income and credit guidelines. But I have one old collection 2 years 4 months and I had a lates over a year old On student loans To build my credit I open 3 credit cards all with 5% utilization reported 8 months ago. I was told by one broker he can't do USDA because I don't have 3 active trade lines with 24 months history. I am in the shopping period and no one else brought this to my attention yet. All other accounts are paid off and closed car loans and credit cards closed by the credit card company but paid off. Does anyone have a good lender in PA that can get the job done?

Re: USDA help

Anonymous — Thu, 14 Feb 2013 05:54:34 GMT

I am in Idaho so no idea about lenders in PA but you look all set to get approved for the loan. Both your history and records look pretty good.

Re: USDA help

MarcPA — Thu, 14 Feb 2013 12:29:15 GMT

to clarify I have credit history and some lates back over a year but everything that was late I paid off 2 small credit cards that were closed and a vehicle loan. He is saying its a USDA thing I hope he is wrong.

Re: USDA help

playboy — Thu, 14 Feb 2013 13:21:35 GMT

@MarcPA wrote:
to clarify I have credit history and some lates back over a year but everything that was late I paid off 2 small credit cards that were closed and a vehicle loan. He is saying its a USDA thing I hope he is wrong.

I don't think that it's a USDA thing. I posted USDA guidelines in another thread last week. USDA is pretty straight forward. Lender overlays is where you can have additional requirements. As I said before, go talk to other banks/brokers bc it's obvious that the person you're insisting upon dealing with doesn't really know much about USDA. Is he/she even an approved USDA lender?

Re: USDA help

MarcPA — Thu, 14 Feb 2013 14:51:04 GMT

He is approved. I have one broker who has been looking for options since the 5th. I have one other broker working on it as of Tuesday he doesn't seem to indicate any issues so far but he was referred by a friend but his office is 3 hours away. My local bank has been difficult to work with schedule wise but would seem to be my best bet aside from the pittsburgh guy

Re: USDA help

Anonymous — Thu, 14 Feb 2013 14:57:36 GMT

Distance is not a factor. You can discuss anything over the phone. All paperwork can be issued through email secured documents, possibly electronically or over nighted in the mail.

Do not delay your dream for something that is pointless.

Re: USDA help

MarcPA — Thu, 14 Feb 2013 17:51:37 GMT

I got alerts saying one broker pulled my credit again if he pulled last Monday why would it need pulled again? I emailed looking for updates nothing yet. How long does this process take?

Re: USDA help

Anonymous — Thu, 14 Feb 2013 18:32:48 GMT

Sometimes when switching Lenders you need an updated report.

Possibly shopping better opportunity for you

Re: USDA help

MarcPA — Sat, 16 Feb 2013 14:23:50 GMT

So here's an update I got a pre approval letter! but only for 100k because so took some business losses in 2010 and 2011 on my taxes I haven't filed for this year plus I got a substantial raise in 2012 and will not file any losses or unreimbursed expenses so that should bring up the average a lot more I am assuming since I took a 16k loss in 2010 and a 12 k loss in 2011 if I don't file for any loss plus my raise 8k I can get pre approved for a lot more. I used to w2 35k plus another 9k on 1099, now I w2d 44k and had another 5k in 1099. Will they average my 1099s or not count them. The house will be in my name since my wife doesn't have sufficient credit. I was curious if my wife who has a 1099 takes any deductions or business losses will this affect my max allowance. I would rather pay more in taxes now and get qualified for more inn my are 100k wouldn't be enough house for 4 people. Also how do they determine ratios my only payments are 100 a month student loans and a balance of 35 dollars spread over 3 credit cards. Can borrow beyond the 29% if the total payment would be under 41%?

thank you all for your help

Re: USDA help

Anonymous — Sat, 16 Feb 2013 14:56:14 GMT

All income will be used for consideration, your losses for the previous years are also considered.

Is this your business or you work for some one?

Re: USDA help

MarcPA — Sat, 16 Feb 2013 15:53:56 GMT

Losses for a business as sole proprietor I do howev. Have 1099s for other work. So my wifes losses count against me but her income doesn't count toward the ratios since its in my name correct?

Re: USDA help

Anonymous — Sat, 16 Feb 2013 16:06:22 GMT

I guess I am a little lost at what you are asking.

Since you say you are a W2 paid employee, are you working for someone else or paying yourself a salary and or an hourly wage?

Your 1099 being generated is that from your sole proprietorship? Or are you receiving a 1099 from another company for doing work, or receiving commissions? Or both?

Are you in a community property state?

Re: USDA help

MarcPA — Sat, 16 Feb 2013 16:47:14 GMT

I have 3 streams of income

1 I am a salaried employee my base is 40k I also get commissions my base was 35k. Commissions used to be seperate 1099 (the owner of my company paid 1099 through seperate business ein)but now its under my w2 which are paid through payroll. So my w2 shows 44k but i also have a 1099 for comissions as well for 4k 2. my business which wasnt active last year but posted a loss in 2011 2010. 3) i have 1099 from doing promotional work for another company for 3k.

My wife has 1 1099 my question is if she takes any deductions write offs etc it will hurt me correct.

Hope that clears things up

Re: USDA help

MarcPA — Mon, 18 Feb 2013 21:02:33 GMT

Got approved for 155k I did my taxes this weekend had to pay an extra 600 to fed and 200 to state but I don't have to pay off collections. I am so excited this guy did all his due diligence so I am more than confident he can get the job done!

Re: USDA help

Anonymous — Mon, 18 Feb 2013 21:04:30 GMT

congrats again!

Re: USDA help

MarcPA — Mon, 18 Feb 2013 21:05:49 GMT

Thank you. Timing couldnt be better for this.

Re: USDA help

MarcPA — Tue, 12 Mar 2013 19:43:28 GMT

I just got "rebucketed" and my score took a 7 point drop is this a problem since the lender already pulled my credit everything else on my report is exactly the same in fact I got an automatic CLI. My utilization is at 4% this puts me below the 640. Does this make a difference if they pull my credit again or are they just looking for changes like high utilization etc.

Re: USDA help

Anonymous — Tue, 12 Mar 2013 19:50:45 GMT

It could put a damper on things. But your credit is not always pulled again. It just depends how long from application to closing.

Re: USDA help

MarcPA — Tue, 12 Mar 2013 19:58:58 GMT

I have 37 pl days till closing so I hope something else brings up my score the credit limit increase isn't reporting yet I literally am 1 point off.

Re: USDA help

MarcPA — Wed, 13 Mar 2013 02:01:04 GMT

I had 2 credit cards out of 4 reporting balamce overall util was still below. I am paying one off to show now balance at reporting both should report 7 days that plus when the credit limit increase reports I hope will help. In total my credit cards are 2250 of credit was 1950 so my plan is to to have 70 dollars of a balance on 1 card and to have all others show zero. Will that help at all.