Profile picture for whitneyc62

usda loan with fico 661 and 658

just wondering i know they don't really go by score alone and i have read that as long as you have a higher score they over look the 3 yrs out of foreclosure. we had a foreclosure back  in august 2008  my husband has a 658 and i have a 661 we have very low dti .  going next monday to pull credit with  the agent guess i am just trying to calm my nerves lol  thanks for your time!!
  • March 08 2010 - Geneva
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Answers (4)

Profile picture for whitneyc62
ok this is just an update.. we had to clean some old stuff off our credit reports that helped our score dramatically . our score ended up being 700 and 690. we passed everything with flying colors  even though we had that foreclosure ( it was due to special things that were out of our control) . we bought our house on june 15 and made it in time for the $6500 rebate. everyday i am so thankful for the usda and second chances when we work this hard:)))) 
  • September 23 2010
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I hope that you can find a lender that will take the time to see you through the approval process, but my experience tells me that you will need to wait 3 years.

  • March 08 2010
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Profile picture for Justin Kennedy
Whitney,
you are correct to be concerned.  the higher score will allow felxabily. however, you will need to have other compensation factors. the very low dti, will help greatly. I would advise to go direct to lender who can RUN GUS (rural housing automated approval system). good luck!
  • March 08 2010
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Your loan (and the reason for the foreclosure) will need to be reviewed by the local USDA (RD) office since the foreclosure is within 3 years.  A higher score only helps if the foreclosure is greater than 3 years old.

Credit information required to be submitted to the local RD office:

For loans with credit scores of 620 of higher, the underwriter is not required to submit documentation of mitigating circumstances regarding adverse credit AS LONG AS the

applicant's credit profile DOES NOT contain ANY of the following:

o A delinquent Federal debt or previous RD loan.

o A foreclosure within the past three years.


With a foreclosure a little over 1.5 years old, most programs have a 2-3 minimum time frame.  Others are longer.  You will need to convince the underwriter and USDA that the foreclosure was completely out of your control.  Not an easy task now days.

  • March 08 2010
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