USDA Denied Loan....Help

[Anonymous]

My and my fiance were one week from closing on our house when USDA denied the loan because he didn't have established credit(he was the one who applied for the loan) he has a 725 score but only has 2 auto loans and a small personal loan on his credit,,,,and they denied him???? I think that is so ludicrous, does anyone have any experience with this? We were trying to get a guaranteed loan.

[Anonymous]

Oh No That is terrible, can you ask for a reconsideration? I recently closed my USDA guarenteed loan and only had one open line of credit (my car loan), the only other things on my credit were old car loans (all in good standing) and one charged off credit card and a few old collections (which i had to pay)... They didn't have any issues with it.  Typically the lender is the picky one not USDA, your LO should have helped you with this..

Another option may be to go with the Sallie May my community loan program but they require 3% down...

[Anonymous]

How long have each of the tradelines been open?

[BrianB_The_Loan_Professor]

That is a tough underwrite - I have only had one loan ever come back with a condition from USDA  and have never heard of or seen them deny a file that the bank had underwritten and approved........... Not sure that there is much you can do - what has your lender told you the options are (if any)

B

[Anonymous]

he has a car loan that he is currently paying on, a car loan that he paid off in 2010, and a small personal loan from 08 or 09 that was paid off, no late payments on either, the only thing active is the car loan through his bank.

[Anonymous]

Only said to go through fha but we have already spent money getting things for that has since we were assured we would have no problems and it went through underwrting at the bank very quickly and now usda denies it. we definitelty don't have $3500 to go toward a down payment.

[ezdriver]

Sounds like you had a weak/lazy lender. I have had buyers whose credit was thin but the lender used alternative documentations [utility bills, rent, etc] to supplement the think credit file ... and got USDA approvals. I recommend that you focus on saving for a downpayment and trying again to purchase.