How I Got a USDA Direct Loan

[Anonymous]

Hi. Congrats!

I'm in OR. Everybody keeps talking about preapproval. I don't understand how to get there. I'm hundreds of miles to the USDA office and I can never get anyone on the phone. They ask for all docs and apps up front through the website. Their app paperwork says not to designate a property until you receive an Eligibility Certificate, but it seems you cannot get one without an app, and you cannot finish an app without giving them details of the property you have not found yet or a mortgage you do not yet have. Can you give me any advice?

[tlavery]

I just wanted to add that I think they will not include a car payment if there are 6 or fewer payments left.  Keep in mind that paying off your car loan may change your credit score.  Do your research on that before you pay it off.  Also, very low income people will need to qualify with a debt to income ratio on 29% for principle, interest, taxes and insurance on the new home and 41% for all your debt combined.  If you qualify as just low income the ratios change to 33/41.

[Anonymous]

Which credit bureau did they pull your credit score from when they initally made the pull? What was the point of requesting the full application, did this mean they would review the other scores from the other bureaus and reconsider their decision?

[Anonymous]

Hello!  I want to apply for a USDA direct loan.  I'm 19 years old, just recently building my credit.  My credit score was 615, last time I checked and my credit report came out to be good.  No deliquencies.  We are a family of 10.  My mom, my dad, my 7 siblings and me, but our income is super low.  In fact, we receive food stamps and just recently cash assistance.  Will there be a problem in qualifying for the loan?  We are in much need of a house, since section 8 and public housing do not seem to have enough rooms.  Thank you for any advice.