My husband and I are getting ready to apply for a USDA loan. I have been self employed doing in home childcare since Jan 2014 but the income will not continue once we purchase a house in a rural area (we live urban now). If we apply only in his name, my debts (student loans) won't be included in the DTI ratio by my understanding. So - our plan is only him to apply.
His credit score is 603 right now and has been rising steadily since we declared Ch 7 Bankruptcy (discharged in May 2011). We home was given up in the bankruptcy (foreclosure).
We are looking at applying for a USDA loan in the late spring of 2015.
-----What does his credit score need to be to have a good chance at approval?
-----He has one 30 day late mark on his credit report June 2014 on a credit card payment - how big of an impact is this likely to have? Do we need to wait until the mark is over a year old?
-----He makes around $50k gross. Should he apply direct or through a lender?
----Bankruptcy dischared 5/2011. House was forclosed in bankruptcy was it wasnt "finalized" till November 2012 (a verrrry long year and a half for us). Do we need to wait until Nov. 2015 for the three year mark or is the house considered a part of the 2011 date?
The houses we are looking at are in the $80k-$110k range (about $700-900 per month mortgage with consideration for taxes, etc?)
Debt in his name come late spring: Car loan $400 per month (I calculate this is under the 29/41 ratio)
Savings for closing costs as of late spring: $6k
Assets in 401k we could pull $5k
