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Profile picture for FamilyCircle

HELP! Need USDA info! How likely are we to qualify for DIRECT loan?

We want to try and get the 8k credit by 4/30 and get an offer in by then. But I have some questions. I plan to go or call my local USDA office Monday but can anyone answer these questions?
1. As far as calculating the income to be within direct limits, Will they go by 2009s tax return income? or by the past 2 years avg? (2008 was half as much and included some unemployment income (layoffs) Do they ever look at like past 10 yrs like a track record, because he has made about the same or more for past 15 years. We have self employment income for 2 yrs returns. Incorporated in 2009. Steady & stable industry. same income cash flow every month also. I am stay at home mom, with small income in 2010, but nothing to show in 2009. 
2.we had a bankruptcy discharged 10/2007, & foreclosure- trustee sale on 5/14/2007. House was not in bankruptcy. 2nd HELOC loan was. Will we be able to get pre qualified before we hit the 3 yr mark from foreclosure on 5/14? or do we have to wait til June to get pre-approved, or will it be ok to close in June when its been 3 yrs. I was told it was ok for usda after 24 mos. We have NO DEBT. No credit cards or loans opened at all since bankruptcy ( we dont want any) We own both cars. perfect rental history since 2007. our fico scores were pulled by a broker last week  612 & 636 and 645 and 659 she said the other was not reporting a score.   
4. If we have to have an income under 38,500 to qualify and our   to qualify your need to pay %26 income to mortgage? how with 2% prop tax on 200k? in CA!?
  • February 21 2010 - Winchester
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Answers (4)

Profile picture for Justin Kennedy

I am sorry to say your chances to become a homeowner by 4/30/10 are very slim; what you need to do is sit down with an expert and take the steps necessary to have your credit profile strengthen to meet the requirements of today's lending standards.

  • February 23 2010
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Can you read John?
  • February 23 2010
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The bk/foreclosure is ok if you have a good explanation and show good pay habits since it happened. I would have to look at the entire picture, but It looks like I could get the deal done.

If you need my assistance let me know

John Stokrp

Mortgage Consultant/Credit Expert

American Financial Network

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  • February 23 2010
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Family Circle - that's a lot of info to digest. Hopefully your interview with the USDA office goes well because your options are going to be limited otherwise.

The foreclosure is going to be the immediate limiting factor.  It is extremely unlikely a bank or lender is going to be willing to look at your application until the 36th month from the foreclosure sale - which is the "guideline" for FHA financing.

Prior to the 36th month I'd suggest finding a lender or mortgage broker who is willing to take a look at your application and make some recommendations to improve your situation in advance. That way you'd be ready to roll as soon as the appropriate time frame had passed.
  • February 22 2010
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