our direct loan and bankruptcy- here's what I found out

[Anonymous]

I talked to our local office about our loan approval yesterday because we have moved pretty far into the home buying process and wanted to be sure that our loan wasn't going to be denied because of the bankruptcy in late 2009. She told us that as long as we hadn't incurred any new debts since our pre-approval was done that our loan wouldn't have any problems even with the bankruptcy on our history. I feel alot better about the process now. We are waiting for our appraisal to be done and if that goes as I think it will then we will have a closing date soon.

[ShanetheMortgageMan]

Nice to know that the Direct version has more lenient BK guidelines than the Guaranteed version - thought it was 3 years for both.

[wednesdayaddamsd]

glsgrl,

First, congrats on getting this much closer to your new home!

Thanks for sharing your experience. There are many of us who have the same questions you seem to have had. May I ask what your mid score is, and if the reason for your BK made any difference to USDA during the approval process?

[Anonymous]

My husbands score was in the range of 670 and mine was 700 so we had pretty high scores to start. They didn't even question why we filed before so this was the first time I had even mentioned the reason and it didn't seem to matter. It was just important that we didn't incur any new debt.

We're very excited to be this close!

[wednesdayaddamsd]

I am excited for you! I've been going through financial issues (and their repercussions) since a job loss 4 years ago so I feel that there is a light at the end of the tunnel. I am grateful to you and the others out there that are nice enough to share their experiences. It is so helpful! Thank you.

Many blessings to you and your family!