For a score hovering around 625... more than one risk layer (credit waiver for low score and payment shock - no previous housing pmts).
I know there are "compensating factors" to consider - he's been at his job 8 years and has cash reserves.
Technically yes, he could be approved but we're just wondering if it's really that common or if it's just a huge stretch? LO thinks he should give it a shot.... just curious if anyone has opinions or similar experiences to share.
I wasn't aware that this was even a possibilty. Where did you hear of this waiver. Please tell me more. We've been deseprately trying to get my gf's score up so we can apply.
Oh you gotta check out this document: http://www.rurdev.usda.gov/SupportDocuments/CA-SFH-GRHUnderwritingGuide.pdf
GREAT info, all the details on what they will and won't accept.
They can submit a debt waiver (in case your DTI is over the 41%) and they can submit a credit waiver (explaining why they will give the loan even though credit scores are low). I believe those are the 2 main things they can do to get USDA to approve an otherwise ineligible application.
I just wonder how common it is for lenders to do that.
Our lender required us to be at a 640, but it could be because USDA is a little less strict with a score abouve 640 I guess.
You just made my day! Read it and I think she will qualify now. Thank you so much. Now we can at least talk to a lender. I didn't want to talk to anybody until we would actually qualify