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USDA Qualification help

Income is gross $2400 monthly. He just graduated from college in December and started working in Jan.Credit: One paid collection $71 in 2009, high util on cc's all paid on time, no lates at all. CC are not over the credit limit, most are near the limit. Per a LO calculations, he has 44% DTI.Scores are TU (678) per Walmart; EQ (634) per myfico; EX (617) per LOThe LO says she wants a middle 640 score. I know we need to pay some balances down, but with our other factors do you think we have a shot?? Do you think we could be streamline approved?? What has been your experiences?? Any advice is appreciated!! Please help! by mrsmis_961_495 from Lawrence, Kansas. Jun 27th 2012 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

You need to raise your score.. 640 is the minimum, and most lenders want 660 or above for USDA...Also the credit scores you came up with will be nothing like the scores your loan officer will have when he runs your credit... If your serious, and it sounds like you are, you need to have faith in your Loan Officer and let him do his job rather than hitting up internet posts.. if you don't have faith in him,,, then you need to find a LO that you feel comfortable with.. your scenario is not unique, and any competent LO can guide you into getting your score high enough to qualify.. (assuming that's the only thing in your way)... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jun 27th 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

Why in the world are you using Wal-Mart to get your credit scores for a mortgage? There are various different score models based on what type of credit is being considered. The model for a mortgage is much more stringent than that of an auto loan. Get together with a local Mortgage Banker/Broker, rather than one of the big banks or big national mortgage factories, and for goodness sakes, not Wal-Mart either. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, He/She is trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

Jun 27th 2012
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Joel Lobb (kentuckyloan)
#3 ranked lender in Kentucky - 192 contributions

USDA uses a Automated Underwriting Engine called GUS. If the score is below 640, it will automatically get referred. Most lenders will not do a refer eligible USDA loan. Theu will want the underwriting findings to read Accept/Eligible

Jun 27th 2012
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Michael Humphrey (mhumphrey)
#10 ranked lender in Kansas - 6 contributions

Yes, you need a 640 credit score. I have a tool that tells you exactly what to do to get the necessary points. All's you have to do is do it and send me the proof and I can raise the score in 2 days. BTW, is his new job in the field of study from College?MichaelBNC National Bank913-207-4327

Jun 27th 2012
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Cody Bellah (cody@communitymortgagekc.com)
#16 ranked lender in Missouri - 71 contributions

I can do DTI's up to 48% but would also need a 640 fico and paying down just 1 of the CC to a 20% balance would get him over the 640 Fico, If you would like to call me I would be happy to help you 816-256-0013 Cody Bellah

Jun 27th 2012
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James Casson (jimcasson@jcmtg.com)
#46 ranked lender in Kansas - 12 contributions

This is an interesting situation. The bottom line is that each lender will utilize their own credit report and will use that report through the process. So scores from different sources dont work. What they recive they use. If that loan officer is willing to work with you on improvement great. If not, find a new loan officer. I am local and will invest the time. Thanks. Jim. 9139444767

Jun 27th 2012
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

I have lenders that will do a USDA loan at a 620 credit score but I am not licensed in KS. Find another mortgage broker.

Jun 27th 2012
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David Van Waldick (Dave Van Waldick)
#112 ranked lender in California - 11 contributions

There are many ways to approach this loan need. The best way to know for sure the amount and terms you are eleigible for it to get underwriting pre-approved. Pre-approve yourself by going to our proprietary automated underwriting system www.ePrequal.com.In minutes you will get a custom pre-approval certificate, financial summay of transaction, various loan options and much more. It's like having an experienced Loan Officer and Underwriter at your fingertips 7/24. No waiting, and No sales pressure. David Van WaldickNational Loan AdvisorePrequal.com, LLCP: (888) 930-4223www.ePrequal.com "One Minute Home Loan pre-Approvals

Jun 27th 2012
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