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We sent in our application last week. My understanding is if you are a sub 640 you cannot have any collections. If you are above 640, they will overlook a couple baddies with good explanation.
My LO said if we didnt have a 640 then no USDA which i dont get...
@Familywantsahouse wrote:We sent in our application last week. My understanding is if you are a sub 640 you cannot have any collections. If you are above 640, they will overlook a couple baddies with good explanation.
So I'm guessing that means even if I get everything gone/paid except the repo and apartment complex, it's a no go? Their website is misleading, as well as the application pack they sent me, cause it says "no collections in the past 12 months" no 30 day lates/slow payments, no slow/late rent payments, no bankrupcies/foreclosures in 3 years, no tax liens, judgements, charge off's etc. everything it had listed that you can't have if you have less then a 640, I don't have. Everything on my CR is at least 4 years old and im on time with my current auto loan and CC and at a 9% utilization. I plan to get all the collections gone/paid except the repo and apartment complex, but the apartment complex is set to fall off May 2013. I'm not planning on applying till later this year when all the collections are gone/paid, so I can pay the apartment complex off by then if I have to, but I will not have the money to pay off the repo, ever. Just not sure why they say you can get approved with less then a 640 under "these" conditions, if they don't mean it?
This is what I am going off of...I've also been in contact with our USDA rep and gone over all of our personal credit issues and he said based on what I described, we'd still qualify with a sub-40, but once all my PFD's actually report we should meet these guidelines.
Unacceptable Credit
I am looking to apply for USDA guaranteed and I was told that I need a 640 now.. a few months ago in Sept I was told 620 was good with no questions asked about credit
@cd2004 wrote:I am looking to apply for USDA guaranteed and I was told that I need a 640 now.. a few months ago in Sept I was told 620 was good with no questions asked about credit
Same thing happened to me. The bank loan officer told me a 620 mid score and I was like 10 points short. I got my scores to a 642 TU and a 636 EQ. She then repulled and was like I needed my EQ to be 640 and hung up on me (I then found another bank where the LO wasn't rude in the response and explained the process to me). In my understanding, if you are going the guaranteed route its the bank you are dealing with that can set the standard on minimum middle score. My bank wasn't picky with my past credit mistakes being that they were over 4 years old but the underwriters are the ones that begin asking questions and I only need one letter of explaination for a gifted fund. Take the time and get a score over 640 to account for additional inquiry hits if your last mortgage pull was over a few weeks apart. It'll make the process much smoother.
I am going through the USDA Guarantee Loan. My MB told me that the minimum had to be 640 in which I was surprised, I am kinda glad because my conditions was simple and less stressful. I only had to write LOE for 2 new accounts and 1 inquiry for last 90 days and of course you still had to send the financials like 2 months paystubs, 2 months bank statements and 2-3 years on W2s and tax statements. In UW now, I am still hyperventilating just a little until they say clear to close.