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USDA underwriter says he will accept our complicated situation, but how do we find a lender?

We filed bk7 in 2005, discharged in Feb. 2006.  The bank refused to reaffirm mortgage, but we reaffirmed a home equity loan.  We stayed and continued to pay.  We offered a settlement on the home equity loan which was accepted.  Then we fell on hard times last year, and the bank said we didn't qualify for HAMP or an in-house mod because of our bk7, and now we are trying to buy again.  The deed was still in our names, but a local lawyer wrote up a quit claim deed to take hubby off the deed.  The house is in pre-foreclosure, but nothing has happened in a month.  We have talked to several mortgage brokers and banks who all say it's possible to get a USDA loan in our situation, but they can't find a lender to agree.  We spoke to a USDA underwriter, and he even emailed information to a broker that confirmed that as long as the deed is out of my husband's name, he will qualify for the loan, but all the lenders are wanting to see the deed out of his name for two years.  I understand about the underlying guidelines by the lender, but if the USDA is saying they will approve it, why would the lender not make an exception??  How can we find a lender who will agree with USDA guidelines and approve us? Also, our mid score was 650, but will go up in a few weeks when we pay off all of hubby's credit cards.  (If it makes any difference, we are in Kentucky)
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August 29 2012 - US
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Answers (5)

Profile picture for doodlebugger007
I figured out what I will need is a lender/investor with no overlays or very lenient overlays.  USDA guidelines are not the problem.  The lender/investor overlays are the problem.  We had a lot of things fall off our credit report this month and our scores are up, so we want to apply soon.  We are wondering how we can find a lender/investor without these overlays?? 
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September 06 2012
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Northern Kentucky.
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August 30 2012
Where are you located?
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August 29 2012
Profile picture for doodlebugger007
We have a realtor.  She was recommended by the mortgage broker or "specialist" we have.  That mortgage person cannot find a lender, but says there were only three for her to choose from.  Should we ask our realtor to find a lender or a broker that could help us?
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August 29 2012
Find a great Realtor.  We can find your lender to work with you.
We can guide you through the rest of the process.
You do not have to do all the work or hunting  -  that's what we are trained to do!
Robyn the Realtor
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August 29 2012
 
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