USDA process

[Anonymous]

I'm losing hope in being approved for an USDA loan. Here is a bit of my back story:

I live in South Florida where the rent is RIDICULOUS. I pay $1,200 plus light and water for a small 2/2. I am definitely thinking about moving when my lease is up next April but with 3 dogs and the rent market how it is, I thought being a home owner would be better.

I saw a post on facebook where a loan officer stated with a 600 credit score you qualify for USDA.

I did the quiz they had on their site and they reached out. My first initial thought was I'm not even going to try, my credit score is in the low to mid 500s for sure.

I recently purchased a car in Feb and gave it a shot thinking maybe my score went up and to my surprise the LO came back that my middle score is at 607, which "qualified" me. I sent over all the documents they requested for pre-approval from the UW.

I just heard back today that it came back as "suspense" due to ratios but that they fixed a couple of things and sent it back to UW.

At this point I've lost hope.

Currently this is what is on my credit:

about 4-5 accounts in collection/chargeoff (no more than $3,000 in total, range from 2013-2018)

Students loans: $4,652 (was on income repayment plan with $0 payments and then $50 payments that were on time and now it is in forbearance)

Car payment: $389 a month

Credit card: $300 balance, just recently opened

[NC_Mtg_Loaner]

mortgage loans are certainly easier to obtain when one has some money (check Gift policies) for a down payment--3-5%, but make no mistake about it......when you borrow a large sum of money, such as one would to purchase a home, you will more than likely at some point in ownership perhaps--have a desire to pay it all back.

Life happens along the way, but being prepared (mentally as well as financially) may include having some money set aside for those rainy days.....

If your USDA deal falls through (and let's hope it doesn't get drawn out into the time period while Congress fights to pass a budget at the end of the fiscal year because it 'tis the season) then perhaps you can regroup and refocus your goal and plan to use whatever you can save plus an income tax refund that you might receive next Spring??

Just keep your eye on the prize and don't give up!

[Anonymous]

Thank you! Def not giving up. I will just have to wait my time, keep working on my credit and wait until tax time to have a down payment available.

[VALoanMaster]

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@Anonymous wrote:

I'm losing hope in being approved for an USDA loan. Here is a bit of my back story:

I live in South Florida where the rent is RIDICULOUS. I pay $1,200 plus light and water for a small 2/2. I am definitely thinking about moving when my lease is up next April but with 3 dogs and the rent market how it is, I thought being a home owner would be better.

I saw a post on facebook where a loan officer stated with a 600 credit score you qualify for USDA.

I did the quiz they had on their site and they reached out. My first initial thought was I'm not even going to try, my credit score is in the low to mid 500s for sure.

I recently purchased a car in Feb and gave it a shot thinking maybe my score went up and to my surprise the LO came back that my middle score is at 607, which "qualified" me. I sent over all the documents they requested for pre-approval from the UW.

I just heard back today that it came back as "suspense" due to ratios but that they fixed a couple of things and sent it back to UW.

At this point I've lost hope.

Currently this is what is on my credit:

about 4-5 accounts in collection/chargeoff (no more than $3,000 in total, range from 2013-2018)

Students loans: $4,652 (was on income repayment plan with $0 payments and then $50 payments that were on time and now it is in forbearance)

Car payment: $389 a month

Credit card: $300 balance, just recently opened

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Hi Koriri,

Just a heads up. USDA is generally a little bit easier to get approved for if you have a 640+ mid score because that's cut off for their automated underwriting system. That means your file is being manually underwritten.

If you do not get approved this go around, just focus on raising your score & try again.

One easy way to do that is to settle any of the charge offs that are reporting a balance owed on your credit.