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What are the requirements for a USDA loan? DTI? Credit score?

by t.moore777 from Markham, Virginia. Apr 8th 2016 Reply

Lynn Bossi Kinsel (LynnKinsel)
#39 ranked lender in Virginia - 61 contributions

One of the great things about the USDA loan is that you don't have to be a first time homebuyer! We sell our loans directly to GNMA so this means greater flexibility on credit score. Would love to have the opportunity to talk with you about the programs ins and outs. Feel free to contact me directly 804-677-8588 Lynn Bossi-Kinsel NMLS#259819, Mason-McDuffie Mortgage Corporation

Apr 8th 2016
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

The list of requirements for USDA are pretty vast.. about 300 pages.. and there are different allowable DTI ratios which are based on your credit scores.. with a mid credit score of 640 or less, the debt to income ratios of 29/41 can not be exceeded. With a 680 middle credit score - we can do a manual underwrite, and request a ratio waiver ONLY IF the PITI ratio is between 29 and 32 percent OR the total debt ratio is between 41 and 45 percent. DTI ratios should be calculated by a mortgage professional, since most folks do not how to calculate it correctly.. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 NMLS# 226347

Apr 11th 2016
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