Comments on: 3 Things The Lender Looks At When You Apply For A USDA Rural Development Home Loan

By: Debbie

Debbie — Tue, 31 Jan 2012 14:34:37 +0000

Hi Paul,
I applied for a USDA loan back in May of 2011 and I just received a letter from the USDA for an interview. I called the loan officer directly since I am working directly with the USDA to request a phone interview instead of a face to face interview which is what they are asking of me. They declined the phone interview. The loan officer claims that it’s not even worth it for me to go to a face to face interview at this point because I have an old collection that I must take care of before they can work with me. I told the loan officer that I can pay for it. She said that even if I pay for it, I would be denied and would have to wait six months and then submit a new application. I told her that would be unfair if I am willing to take care of this collection right now, why are they not giving me the opportunity to obtain the loan now. She claims that per USDA regulations, once I pay for the collection, I would have to wait six months and then apply again. I don’t understand why she is doing this? This particular collection is from 2007. Can she deny my loan even if I pay for the collection right now? Thank you in advance for any feedback. I do not know what to do? I find this is so unfair! Scores: TU-677, EX- 618, EQ-598.

By: Melanie

Melanie — Sat, 31 Dec 2011 08:30:40 +0000

My husband and I are planning to buy our first home. His credit score isn’t enough to get approved. I have a 625 credit score. I don’t work. Could we use my credit and his income? I know the area we live in is USDA eligible and his income qualifies for a USDA Guaranteed loan. I am currently disputing a couple of items on my credit report. Is there any way we could do this?

By: Charla

Charla — Tue, 25 Oct 2011 00:14:44 +0000

My credit score, debt to income ratio, and income all meet the qualifications under the USDA program, but I had short sale on my former home in June 2010. How long will I have to wait before I qualify for a new home loan under the USDA program?

By: Stephanie

Stephanie — Tue, 27 Sep 2011 14:05:56 +0000

I live in North Carolina and I found a home that was eligible for USDA financing. My credit score is 668 ( middle score) but I am not currently working. My husbands credit is not so good. Would I be able to state his income on the loan application without using his credit score as a factor?

By: Joey

Joey — Thu, 08 Sep 2011 15:22:46 +0000

I was told that you could get approved with 2 years after a discharged BK 7. That the underwriter justed need to sign a credit waiver. And that you could be in a BK 13 as long as you had 12 month payment history. Again you would need a credit waiver. Is that wrong?

By: pauldunn

pauldunn — Thu, 25 Aug 2011 14:51:16 +0000

@ Steve – 3 years since the discharge of a bankruptcy are required.

By: Steve

Steve — Wed, 17 Aug 2011 04:55:21 +0000

Retired. Scores 670-680. Perfect credit until 2009 due to lawsuit over business lease, had to file c7 to get out of it. Perfect since, no debt. Looking at property priced so dti would be below 20%. Lifetime government pension of 65k/yr. Any chance for RD guaranteed now, or must I wait another year?

By: pauldunn

pauldunn — Mon, 15 Aug 2011 21:32:10 +0000

@ Kris – you should look into the DIRECT USDA Loan. Call your local Rural Development office and they should be able to help you out.

By: pauldunn

pauldunn — Mon, 15 Aug 2011 21:31:08 +0000

@ Bryan – Maybe. That would depend on how far you have to move and if you are moving for employment.

By: BRYAN

BRYAN — Mon, 15 Aug 2011 19:49:59 +0000

Can you get a usda home loan if you have an existing home loan. I live in North Carolina. Credit is good. Ive already been pre approved but I hear that you cant have an existing home loan.