What does your credit score have to be for a USDA direct loan?

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My husband and I were not really planning to buy a house, but found a foreclosure that we are REALLY interested in. (I know you have to be careful about work it might need done, etc, but I love this house.) We cannot get a conventional loan because the house is only $ 35,000 and most banks will not loan such a small amount. We are looking into a USDA loan because we would be first time home buyers, but really have no money down. Having said that, even with a 10 year mortgage the house payment would be about half of what we pay for rent. Our credit isn’t HORRIBLE. We are not late on any payments nor have we been in the last several years, we just have a few cards with high balances. Just wondering if anyone has experience with this and if I should get my hopes up for a USDA loan or not. Thanks!!

P.S. We do have 4 kids and we do meet the income guidelines, etc.

2 Comments
  1. Reply
    Cold
    April 29, 2011 at 9:23 pm

    From their website:
    660+
    You will need adequate income – minimum 24 months
    Qualifying ratios are 29/41 – that seems to be what they focus on is your debt.

    Did you know that if you have high credit card balances it can lower a credit score by about 100 points? From: MyFico/education.com
    Do you think there is any way you could pay those credit cards down?
    Could you pay them so they don’t touch more than 30% of your available limit?
    Ex: $ 1,000 limit, don’t let that card touch $ 300.
    One day, make it a goal to pay them in full each month.

    The down payment is a bit less than 3% – required…

  2. Reply
    Victor
    April 29, 2011 at 10:05 pm

    credit-report-score.10001mb.com – try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.

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