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- April 4, 2012 at 11:19 am #245990
Does anyone with a less than 640 credit score have any personal experience with this? We technically meet the income guidelines this year (and probably will for the next few years) My husband’s middle score is a 600. He will be the only on on the loan. (I have some bad business debt on my credit that I am fighting to have removed that would not allow me to qualify)
This is what the USDA says for the DIRECT loan with less than 640
If the score is below 640 a full manual credit assessment must be done* by the underwriter.* Indicators of unacceptable credit history for this mortgage loan are:
- More than one 30 day slow pay in the last 12 months
- Foreclosure less than 3 years old
- Tax*Lien or delinquent Government debt with no arrangement for re-payment.
- Judgment outstanding with in the last 12 months
- More than two slow rents in the last 12 months
- Account converted to a collection within the last 12 months
- Chapter 7 discharged for less than 3 years
- Foreclosure less than 3 years
- Chapter 13 discharged for less than 1 year
We absolutely more than meet those guidelines. I just got deleted the only collection within the last 12 months that was actually a new collection from* a nearly 7 year old charge off. We might even be close to 640 when all is said and done with everything I’ve been able to remove. I’ve also emailed our USDA contact for this area, but I am looking for person experience with a sub 40 and this program.
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