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I'm currently in the process of cleaning up my credit in order to get pre-approved for my first mortgage. The area we are looking at currently qualifies for a USDA loan, but only until October 1st. Credit Karma is telling me my score is now at 624 (a major improvement from a couple of months ago!). I just sent all of the necessary documents to Compass Bank to start the pre-approval process. It will only be me on the loan because my husband only works part time and has a very low credit score.
A USDA loan is our best option in my opinion. I've read that you can get approved with a 620 credit score. I do however have over $20K in student loans (but they are on deferral because I'm still attending school). My other monthly debt only comes to about $400 and my monthly income is about $3,800.
If you have been qualified for a USDA loan can you tell me about your experience? Or if you know a lot about the process can you please share any info you know? TIA!
Arizona is a community property state - the USDA might require your DH to be on the loan too (but I'm not certain).
AH ha, found it!
NON-PURCHASING SPOUSE (NPS) in COMMUNITY PROPERTY STATES: Except for obligations specifically excluded by state law, the debts of NPS’s must be included in the applicant’s qualifying ratios when the applicant resides in a community property state or the property guaranteed is located in a community property state. The NPS’s credit history is not considered a reason to deny a loan application. However, the NPS’s obligations must be considered in the debt-to-income ratio unless excluded by state law. A credit report that complies with Rural Development requirements must be obtained for the NPS in order to accurately determine the debts that must be counted in the total debt ratio. Community property states include: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and
Wisconsin.
I have a USDA guaranteed loan. The process was pretty easy but long. Double the amount of time you think you will need.
I did have to write a letter explaining who would be living in the house and how the move would affect my job since I was moving from NC to SC. I lived in NC for years but worked in SC. Once I explained that I would be closer and actually in the state I worked in (hence no more double state income taxes) it was not an issue. I also had a few overdrafts on my account but had overdraft protection and never incurred a fee. I did have to write a letter explaining those.
Arizona is a community property state - the USDA might require your DH to be on the loan too (but I'm not certain).
AH ha, found it!
NON-PURCHASING SPOUSE (NPS) in COMMUNITY PROPERTY STATES: Except for obligations specifically excluded by state law, the debts of NPS’s must be included in the applicant’s qualifying ratios when the applicant resides in a community property state or the property guaranteed is located in a community property state. The NPS’s credit history is not considered a reason to deny a loan application. However, the NPS’s obligations must be considered in the debt-to-income ratio unless excluded by state law. A credit report that complies with Rural Development requirements must be obtained for the NPS in order to accurately determine the debts that must be counted in the total debt ratio. Community property states include: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and
Wisconsin.
Thank you for the info! I had no idea about that, but it makes sense. My husband doesn't have very much debt, just one credit card and some student loans that are currently on deferment. Definitely something to keep in mind. I'm glad you told me that so I won't be blindsided.
I'm currently in the process of cleaning up my credit in order to get pre-approved for my first mortgage. The area we are looking at currently qualifies for a USDA loan, but only until October 1st. Credit Karma is telling me my score is now at 624 (a major improvement from a couple of months ago!). I just sent all of the necessary documents to Compass Bank to start the pre-approval process. It will only be me on the loan because my husband only works part time and has a very low credit score.
A USDA loan is our best option in my opinion. I've read that you can get approved with a 620 credit score. I do however have over $20K in student loans (but they are on deferral because I'm still attending school). My other monthly debt only comes to about $400 and my monthly income is about $3,800.
If you have been qualified for a USDA loan can you tell me about your experience? Or if you know a lot about the process can you please share any info you know? TIA!
I too would like to know. I asked today if I can just get pre-approved and then go shopping and the answer was basically "get a house lined up -then we go in with paper work ? SO--- to meet the deadline of the eligible areas I have to buy a home this weekend! Please let me know what your lender said if you go through with it.- USDA is out of the picture or map really after OCT 1-in my area, then its too far. I just wanted papers in by deadline... not move.
I have a USDA guaranteed loan. The process was pretty easy but long. Double the amount of time you think you will need.
I did have to write a letter explaining who would be living in the house and how the move would affect my job since I was moving from NC to SC. I lived in NC for years but worked in SC. Once I explained that I would be closer and actually in the state I worked in (hence no more double state income taxes) it was not an issue. I also had a few overdrafts on my account but had overdraft protection and never incurred a fee. I did have to write a letter explaining those.
FWIW, Credit Karma says my score is 757.
What exactly is "double the amount of time you think you will need"? This tells me nothing. How long does it take? One year? Two Years? A Decade?!
I can give you the timeframe from my own experience (USDA Guaranteed, *not* USDA Direct).
Lender Pre-Approval - 2 Days
Contract - 1 Week
Lender application through underwriting - 3 1/2 Weeks
USDA submission through approval - 3 weeks
We started off in mid-July and closed September 19th. This was with new construction, and there were no real delays at all. From reading these forums though, I would imagine you could get hung up on almost any step of the process. I would also guess if you were to buy a pre-existing house, it would probably take longer due to negotiations and the inspection.
Arizona is a community property state - the USDA might require your DH to be on the loan too (but I'm not certain).
AH ha, found it!
NON-PURCHASING SPOUSE (NPS) in COMMUNITY PROPERTY STATES: Except for obligations specifically excluded by state law, the debts of NPS’s must be included in the applicant’s qualifying ratios when the applicant resides in a community property state or the property guaranteed is located in a community property state. The NPS’s credit history is not considered a reason to deny a loan application. However, the NPS’s obligations must be considered in the debt-to-income ratio unless excluded by state law. A credit report that complies with Rural Development requirements must be obtained for the NPS in order to accurately determine the debts that must be counted in the total debt ratio. Community property states include: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
Huh... my hubby and I have bought 2 homes. The first was with a USDA loan in Washington state. I did not have an income (sahm) at that time. My name was not on the documents anywhere. The loan was entirely in my husband's name and based on his income. The second home was with a traditional loan in Montana. I was working as a substitute teacher at that time. Again, the entire loan was based on my husband's income because mine could not be counted (similar to a seasonal job / considered temporary). There were places on the paperwork for my signature this time, but officially, I was not part of the loan.
Both states were community property states.
Wonder if the bolded above is "new" (within the last 10 years or so)?
Okay so could I buy a HUD house with a USDA Mortgage? I don't mind a three month waiting period, but what if that is too long for a HUD property?
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This tells me nothing. How long does it take? One year? Two Years? A Decade?! 
Yeah But:
