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Old 04-18-2009, 02:41 PM
 
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I just recently applied for the rural development direct loan. But im still waiting on rural development to give me a final answer . I have a debt to income ratio of 37-38% with a credit score of 653. So what do you think my chances are of getting approved?
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Old 04-20-2009, 08:21 PM
 
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I have a debt to income ratio of 37-38% with a credit score of 653 and im trying to go for the rural development direct loan , does anyone know if i could get approved for this loan?
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Old 04-20-2009, 08:32 PM
 
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Your PITI can not exceed 29%, and they are very strict about this. I once saw a 30% granted, only because there was NO other debt and the monthly housing expense was dropping by $200. If your front end load is 27% and your total DTI is 37-38%, you'll qualify on that aspect. If the front end is 37-38%, you will not qualify.

The credit score is a concern, it's possible it's changed, but at one point they wanted no deliquencies in the past 24 months.

Also there are income restrictions to the program and a fairly complicated formula to figure the whole thing out. One thing to note is that they use ALL household income--even the teenagers p/t job at Burger King and grannies Social Security to qualify.
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Old 04-20-2009, 08:36 PM
 
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Quote:
Originally Posted by brokerdave View Post
Countrywide came through with a rural program recently. I found out about it today. 100% Financing. No mortgage insurance. I think it is USDA backed. They are using the USDA rural zoning for approvals.

-100% financing
-6% sellers concessions allowed
-no monthly mortgage insurance
-no cash contribution or reserves required
-non-traditional credit lines are OK(phone bills, electric, gas, etc.)
-not limited to first time home buyers
-30 year fixed rate
-primary residence
-rural development eligible area

Good info for other brokers who don't know and buyers who have been on here looking.

Buyers I would suggest finding a broker who can broker countrywide if you need 100% financing.
You find this to be a good deal after the mess everyone is going through?

countrywide eh...I've heard of them
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Old 04-20-2009, 08:46 PM
 
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Originally Posted by LongIslandCitizen View Post
You find this to be a good deal after the mess everyone is going through?

countrywide eh...I've heard of them
The way these loans are structured they tend to weed out the bad apples. They are VERY tight on DTI's and credit. They have both income and property value limitations. I'd say that in most areas, very few actually qualify. In five+ years as a LO, I got maybe four of them through to closing. I have no doubt that every one of them was a solid loan. This is a full doc product, and I mean under a freaking microscops full doc. Many of the people going into these loans end up with a lower monthly housing expense than they have as a renter.

This is a government made and backed loan product. Unlike FHA there is no private party involved, it's 100% the government underwriting the loan and holding the paper. (I can't remember if they service the loan or if it's serviced by a contract servicer, not that the servicing really matters.)
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Old 04-28-2009, 09:09 PM
 
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i just found out i have a collection from dishnetwork for $123. its a little over 1 year old. but im worried that this will effect my chances of getting approved . does anyone know if this could make the specialist deny the loan?
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Old 04-29-2009, 07:03 AM
 
26,589 posts, read 52,939,688 times
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Quote:
Originally Posted by jnava3432 View Post
i just found out i have a collection from dishnetwork for $123. its a little over 1 year old. but im worried that this will effect my chances of getting approved . does anyone know if this could make the specialist deny the loan?
The USDA loan wants perfect credit. Debts don't go to collections overnight, you had to ahve gotten at least several bills that you ignored. underwriters don't like tos ee that, especially USDA underwriters.
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