USDA- judgements

[Anonymous]

Hello!  I just applied for a USDA loan with a mortgage broker.  They came back and said that they could not get an automated approval because i have a judgement that is not paid off.  And i have to pay it off update it on my credit report and have it released before i can get approved.  A couple of things i'm wondering here.  I read in the USDA handbook that as long as you have a payment plan set up with a judgement than that should be fine.  And i do.  I have been paying on it for over 3 years every month.  I only have 2 payments left.  I can pay it off now but to have to wait for the report to update and have it released before i get an approval doesn't sound right to me.  Has anyone gotten an approval for USDA with a judgement?  Did you have to do anything different?  I have talked with another mortgage broker and they said that they could get an approval and seemed more knowledgeable about USDA loans.  So i think i'm going to go with another lender.  Just wondering before i run my credit again.  FYI my mortgages scores are low but high enough to get approved i think.  644-626-602.  Thanks in advance for any advise or others experiences. 

[Anonymous]

Rd.usda.gov read the lender handbook. You must know the guidelines as many lenders seem to be unsure of them and my knowledge of the handbook is what saved our loan. There are more stringent guidelines if your mid score is below 620 or 640 (forget off the top of my head) but keep in mind that in addition to meeting USDA standards, lenders can also have overlays and it very well might be best to switch. Read the handbook first though.

[Anonymous]

I have read the handbook.  Many times.  I'm a little obsessive about reasearching things.  I've been looking into this for over a year.  I just don't think she knew that much about USDA loans.  And i think they had additional overlays.  But, i found a new broker that said they don't have many additional things and she knew more. 

[Anonymous]

Go with the new broker as I also believe it is a overlay. I didn't have any judgements though so I couldn't swear on it.

[Anonymous]

Did you go to USDA.gov and pick a lender from their site?

[Anonymous]

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@Anonymous wrote:
Did you go to USDA.gov and pick a lender from their site?

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I did not but they are listed on there because i looked yesterday.  

[Anonymous]

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@Anonymous wrote:
Go with the new broker as I also believe it is a overlay. I didn't have any judgements though so I couldn't swear on it.

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Yes i believe it is because another broker told me yesterday that she has gotten approvals with existing judgements. 

[PdxGirl]

I did it...I got a USDA loan two years ago with open judgements.  They were on payment plans and I had made all payments on time.  I purchased my home with balances open on three of them.  You can do it!

You will need a letter from whoever is collecting your payments, showing the payment dates and the remaining balance due, and you will need your court documents.

Good luck!

[Anonymous]

Very good

[Anonymous]

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@PdxGirl wrote:

I did it...I got a USDA loan two years ago with open judgements.  They were on payment plans and I had made all payments on time.  I purchased my home with balances open on three of them.  You can do it!

You will need a letter from whoever is collecting your payments, showing the payment dates and the remaining balance due, and you will need your court documents.

Good luck!

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Thank you!  This might be a stupid question but where would i get court documents?  Down at the courthouse?  I never went to court.  My payments are set up with the collection agency.  They aren't very helpful so hopefully they will give me records of my payments.