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trying to get approved for a USDA loan with a 620 fico score

I got pre approved for a  USDA loan found an agent looked at houses found one i loved made an offer the offer was exepted had a home inspection signed purchase and sales agreement and sent it to my loan officer who submitted it for underwriting only to find out that  mortgage co  denied my loan because my credit score is too low at 620 now Iam heart broken  if the USDA excepts a 620 fico score why wont they?

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March 23 2013 - New Bedford
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Credit score requirements will differ from lender to lender.
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December 25 2013
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Every mortgage lender has different guidelines. Sometimes the mortgage company you are using just might not be approved with a lender that offers the USDA Mortgage with that score. I would suggest you contact another lender in  your area that offers the USDA Home Loan * with a 620 score. We are the #1 USDA Mortgage lender in Oklahoma and we go down to a 620 credit score.

*hotlink deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines
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December 25 2013
Most lenders require a 620 or better to be considered for a USDA loan but aside from credit score you still have to meet additional credit, income and down payment
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August 18 2013
FHA is more flexible with credit scores, USDA is 100% financed so it is really up to the lender you use if they can do it or not. Might be possible but I'm not 100%
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July 23 2013
I would need a 640 score for the USDA but once I would pull your credit, if it came in lower I would be able to run a rescore program, which would tell me what you could do to improve your scores and by approx. how  much they would go up by take action. It maybe be as simple as paying down some money on a credit card to taking out a secured line of credit. I have helped many people get a mortgage though me by telling them how they can get their scores up, sometimes its right away and sometimes it takes a few months.  Let me know if can help.

regards,
Brynn
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March 25 2013
They are doing USDA-RD loans here in Russellville AR with a credit score of 620 with manual underwriting. 
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March 23 2013
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Thanks for your Reply  I appreciate your Sraight fowardness if you can recomend a couple of Lenders dealing in MA with experience in USDA loans I would appreciate it very much
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March 23 2013
I would walk into a local bank where you can speak with a human who will give youn the reality of your situation and not some person who is fluffing you over the telephone who is just telling everyone there approved and hoping something sticks. Those agents don't care about you only themselves. There are a few good lenders in Mass that will tell you straight up if you qualify and if not what you will need to do to qualify. Feel free to contact me for more info and good luck
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March 23 2013
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there is an error in my last post my closing date was scheduled for april 15 of 2013 and not march 21 my purchase and sales agreement expired on march 21
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March 23 2013
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The hardship was due to a Divorce I had in 2011 I dont have any maxed out cards i keep the balance to a very low minimum my closing date was march 21
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March 23 2013

Good for you to get back on track.  Was the hardship a medical issue or job loss?    Do you have any maxed out credit cards now?  When is the closing date?

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March 23 2013
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thanks for your reply  I had 2 charge offs back in 2011 wich i paid 1 collection in 2011 wich i paid and three 30 day lates on my car loan back in    2010  all of wich were because of hardship. since then i kept up with all my payments and have seen my score rising.
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March 23 2013

Lenders have their own overlays added to the agencies guidelines. For example VA has no hard fast bankruptcy rule, but most lenders say 2 years. FHA will take credit scores down to 580 for maximum financing, but most lenders require a 620, 640. 

Here is what USDA says –

"Credit scores of 679 to 581: The documented credit waiver and supporting
documentation must be submitted to RD and retained in the lender's permanent case file"

I wonder if there are other layers of risk on your credit profile or loan application like payment shock. What is the reason your credit is at a 620?

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March 23 2013
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thanks for your reply i was thinking of looking for another lender but i dont know if it will hurt me when they pull my credit and see the other enquiries made by the previous mortgage company I,am also wondering if i should just wait till my credit score rises above the 640 range a little confused as to what my next approach should be ?

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March 23 2013
I suggest that you find another lender who handles USDA loans and try again.
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March 23 2013
 
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