topic Re: USDA Loan Questions in Mortgage Loans

USDA Loan Questions

Anonymous — Mon, 22 Jun 2009 16:09:32 GMT

Just a few questions on a USDA loan. My wife and I are looking at buying a home with a USDA loan. My credit is relatively good (~680's) no late payments just somewhat high debt in relation to balance because credit cards dropping credit lines and because I own most of the debt in comparasion to my wife (see below)

My wife is ~4 years removed from bankruptcy and has scores ~570's. Do we even have a chance of getting a USDA loan?

Re: USDA Loan Questions

WannaHouse — Mon, 22 Jun 2009 17:08:31 GMT

@Anonymous wrote:
Just a few questions on a USDA loan. My wife and I are looking at buying a home with a USDA loan. My credit is relatively good (~680's) no late payments just somewhat high debt in relation to balance because credit cards dropping credit lines and because I own most of the debt in comparasion to my wife (see below)

My wife is ~4 years removed from bankruptcy and has scores ~570's. Do we even have a chance of getting a USDA loan?

To be honest, your high debt and her low scores are going to make it VERY hard if not impossible to qualify at this point. I would work on the debt and get her scores up. You can apply and then let the lender tell you exactly what needs fixing as well. That may help you to avoid making mistakes in how to fix your credit.

Does your wife have any CC's in her name? Can you add her to yours? She needs to try to get her scores above the 620 mark to be in good shape for USDA loans.

Our scores (mid scores) when we applied were 630 and 660 and we did just fine. We both have some collections, but because of the scores, they were overlooked. Our CC debt was about 25%.

Good Luck

Message Edited by WannaHouse on 06-22-2009 12:08 PM

Re: USDA Loan Questions

Anonymous — Mon, 22 Jun 2009 17:30:07 GMT

Thanks for the reply. She doesnt have cc's in her name directly but shes on 3 of mine with long historys.

Our debt to income ratio assuming they dont count deferred student loans is in the 43% range (after rent) so the debt is high for me but maybe ok for usda standards. I just dont know if theyll let it pass with my wifes credit.

Message Edited by Billabongi on 06-22-2009 10:30 AM

Re: USDA Loan Questions

WannaHouse — Mon, 22 Jun 2009 18:38:13 GMT

It can't hurt to try. If her credit is an issue, and you can afford to pay down the cards that she is AU on, then that may very well boost her scores enough.

I would go ahead and apply, and ask them to tell you where to work on it so you can be approved.

Hope that helps