Usda

[Anonymous]

Hi all, was going to go through Naca but now maybe thinking about trying to go usda route, don't have 620 score yet though. Just recently had 2 new collections pop up on my credit report have since paid one off and paying the other within next couple of weeks. Had a charge off with wal mart and they said were no longer collecting on but I went ahead and settled for half of what the original charge off was. Have 2 more charge offs for $968 total, do y'all think I'm I have any chance with getting a usda loan? As I know the damage has already been done to my credit report. I'm thinking I'm going to have to pay these other 2 charge offs.

[StartingOver10]

I moved your question to Mortgage Loans so other people would see it and respond.

Read the stickies in the top of this section

[Anonymous]

Please take a look at the applicant requirements/lenders handbook located at RD.usda.gov. USDA is a very good program but they are pretty strict when it comes to applicants. One requirements is "willingness to pay debt obligations" in addition to "ability to pay debt obligations". You can get a list of approved lenders for your state from this same official site and ask them specifically about your situation but charge offs do not demonstrate a willingness to pay and may need to be over a certain number of years ago.

Also there are two programs. 1. USDA direct for low low income and 2. USDA guaranteed for low to moderate income. They have different guidelines.

[Anonymous]

Oh and there is more documentation required for scores below 660 mid.

[Anonymous]

Direct link to guaranteed loan lender handbook:

http://www.rd.usda.gov/publications/regulations-guidelines/handbooks#hb13555