I don't know if it'll hinder you. I submitted a application for a home a week ago today. We started looking at loan options and the loan officer said that I would qualify for USDA. The first thing your lender should have done was enter your info in the USDA's automatic underwriting system to see if you even qualify for the loan. That's what my lender did. I was approved based on USDA's system but that's the first step. Most banks will still send your file through manual underwriting when it's that time. Next thing you need to know what is the minimum score that the bank requires? If you look at USDA's website, I believe the minimum score they're looking for is 600 or 620. Again your bank may require something different. Most bank will go above what USDA requires. For example, in my situation USDA states that if the borrower has a 620 or higher credit score, he/she doesn't need to write a letter of explanation for past credit blemishes. Well, the lender I'm going through UAMC, required that I write a letter of explanation (thanks myfico for the various letter formats) for 9 charge-offs that occurred 7 years ago. My mid score is a 674. If the bank underwrote to USDA's specification I wouldn't have had to write the letter stating that my father fell ill and that I had to move back to take care of him. All of those charge-off/collections are paid but my loan officer scrutinized my report and asked why accounts where still showing as collections and I had to explain that they were paid and I had to get letters from the CA stating that and remove any disputes, which were removed. If you have a good loan officer, he/she will get you prepared before you go to underwriting by asking the hard questions and asking for tons of documentation and why did you do this and why did you do that. Those are the ones that typically work closely with the underwriters throughout the process. That'll go along ways towards answering any questions that the underwriter may have. You're just getting started in the process. Your loan officer should keep you abreast on the happenings. Don't be afraid to ask questions. After all, you're paying the mortgage. My file to went to underwriting on Thursday. I'm hoping to hear something by 1-18. Send good thoughts and prayers my way guys. I'll do the same for you guys. We're all in the same boat; made some mistakes and now we're trying to make good. If you have more questions you and PM me whatever they call it.