I am thinking about about applying for USDA guaranteed loan once I get my utli on my cards lower and see how my score increase. My two problema are I have a judgement from 2009 that I pay $75.00 a month on and I dont have funds to PIF with trying to save for closing costs and clean up my credit. Also I have been taking care of my disable mother for the past 2yrs so I moved in her house and help her with the mortgage but i dont write checks or anything. I give her some money every 2wks when I get paid. I am reading post that say relatives would not count anyway, is it best just to move in my own apartment so I can have rental history first before applying for a home?
Current 3B scores Dec 2016: EQ: 794 TU: 785 EX: 755 Mortgage scores Dec 2016: EQ: 744 TU: 748 EX: 743 2017 Goal: reduce debt and purchase first home Total credit lines: 112K
That's awesome. Good for you. I know I have excellent rental history. What is an LOE?
****People, in my last posting of the USDA credit requirements, please don't think I came up with anything on my own. It's what I got from the USDA site, so don't jump down my throat saying I'm wrong about anything. None of it is "what I think".
LOE = Letter of explanation (collections, judgements, late payments, etc.)
I wanted to add that I was not worried when the loan went to USDA because I figured with my score I was ok with them. USDA is the easy part, it's getting past the bank requirements that can be tricky. Our LO required a 640 mid score.
Starting Score: EQ: 540 TU: 606 EX: 605 (all from lender on 7/26/11) Current Score: EQ: 601 TU: 648 EX: 642 (from lender on 8/4/11) Closed on our home on 8/31/11!!!! Goal Score: 620-650 to start