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USDA guatranteed loan

i'm looking at a new home, the lender is offering a USDA.guatranteed loan. my question before i get excited that i may get approved is : i have a fico middle score of 623, i filed bk. in sept 2009 and i have had 2 late payments on my car sinse my bk. it's been over a year sinse my last late payment i've been at my same employment for over 5 yrs. i make around 43,000. anual.  what is my shot at getting approved?
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February 10 2012 - Canton
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Keep in mind to maximize your scores, keep your credit card balances under 30% of the credit limits and under 10% is best.  Also don't let anyone pull your credit unless absolutely necessary.  Great news by the way!
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February 10 2012
Profile picture for tommy willoughby
thanks for the reply's as i was posting my lender was running my numbers, my fico is up to 632 and climbing, he said he needed 3 yrs on the bankruptcy. "but if the builder could wait til mid sept to close! i'll do the dang-thing!!!! so i got approved for 175,000. on a usda guatranteed loan and all i have got to come up with is 2000, for closing,, so god does work in mist,ways.. i give all the honor and glory to my lord and savior jesus+christ!!! thank you for your advice take care!!! tommy
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February 10 2012
To be eligible for an USDA mortgage, your monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. At least a 620 FICO credit score is required to obtain an USDA approval through most lenders. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These percentages may be exceeded with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.
Source: http://www.usdaloans-101.com

This said, you may get pre-qualified , but most sellers (banks) are not accepting offers with these financing contingencies as most of them don't get approved.  There is a big difference between pre-qualified  and loan approval.
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February 10 2012
From our guidelines:  A chapter 13 bankruptcy does not disqualify an applicant from obtaining a USDA guaranteed loan.  The lender must document that 12 months of the repayment period has elapsed under the plan with all payments made on time and the applicant has received written permission from the bankruptcy court/trustee to enter into a mortgage transaction. I think the chances are very slim to probably none because of the recent bankruptcy and late payments after.  You should really try to get your scores over 640 which improves your chances and you would need very good compensating factors such as low debt to income ratio, good reserves after closing, etc.
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February 10 2012
 
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