gravelgirl66

Mortgage Help USDA...

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Hello,

I am hoping someone can explain some things... I am trying to get a USDA Guarnteed Loan. I am set to pay off all CC debt (very high) late Jan. I am hoping this will bump my score the 40 points I am short... I will meet the ratio's after that. Also I meet the income guidelines. However, I am married, and wish to appy alone, as my husband had a BK less than 2 years out, prior to marriage. My income of 51K should support the loan, as I am looking to borrow 90-100K.

Soo, do you think paying off all my revolving debt will give me the 40 points mid score? Also, I have 2 auto repo's that are 3,4yrs old respectively. Other than that and a 6 year olD BK, everything else is clean. Also, If I am approved through USDA, then do I have to go find a lender, or do they find one - how does that work?

And finally, I know I know, cart before the horse, a house I really LOVE, is a "short sale" - does that mean I can't use the USDA bc I hear that it takes forever to buy this type of home? Does it mean I can't use "seller concessions" towards closing since the bank "almost" owns it?

Thanks in advance for all your help :)

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Paying off the debt should increase your score...how much is the question.

Without knowing what other mix is on your CR, it'd be hard to guess how much your score increases.

As far as the short sale goes, you may use USDA mortgage - in a short sale transaction, the time will vary depending on the lender...some lenders are faster at approving than others...

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Hello,

I am hoping someone can explain some things... I am trying to get a USDA Guaranteed Loan. I am set to pay off all CC debt (very high) late Jan. I am hoping this will bump my score the 40 points I am short... I will meet the ratio's after that. Also I meet the income guidelines. However, I am married, and wish to appy alone, as my husband had a BK less than 2 years out, prior to marriage. My income of 51K should support the loan, as I am looking to borrow 90-100K.

Soo, do you think paying off all my revolving debt will give me the 40 points mid score? Also, I have 2 auto repo's that are 3,4yrs old respectively. Other than that and a 6 year olD BK, everything else is clean. Also, If I am approved through USDA, then do I have to go find a lender, or do they find one - how does that work?

And finally, I know I know, cart before the horse, a house I really LOVE, is a "short sale" - does that mean I can't use the USDA bc I hear that it takes forever to buy this type of home? Does it mean I can't use "seller concessions" towards closing since the bank "almost" owns it?

Thanks in advance for all your help :)

ggril

You are putting the cart before the horse. Just read the two 2 auto repo's 3,4yrs ago. At this point having the repo's on your credit is as bad as your husbands BK.

If you want to buy a home, these are going to need to be settled. Lenders can view this as a risk, attaching a future lien to a property. They are going to require them to be paid off. My advise is the offer a settlement - making sure you get all your documents then disputing with the credit bureaus to have it removed from your credit report.

Slow down!!!

Owning a home is a very big responsibility!!! USDA loans are easier to get into, if you mess up on a USDA loan, it is very hard to turn yourself around. Possibly going into foreclosure. It is very disheartening on my part -when speaking to people that have problems they didn't prepare for, and are now facing losing their homes.

The home values in your state are not going up any time soon. Trying to rush to get into a property now, you would struggle and facing many problems.

Then when your ready - go for a conforming loan putting 20% deposit down. That way you'll have a low payment, securing the way to a "less of a problem" future.

You can pay down your CC debt behind 50% of your limit. On the other

I recommend you clean up your credit first before you buy your home. USDA Loans have a requirement of 36 months after a BK as been discharged. By not clearing the repos - Next year your husband could try to qualify for a new home loan.

As soon as possible I recommend you contacting the dealers who reprocessed your cars and work on a lower settlements. I have worked with these situations before, remember one repo problem the dealer went out of business, making it harder to contact to work on a settlement.

Not taking care of this problem now - waiting till tomorrow it will be harder to clear up.

My advise to you is write out a budget and plan your priorities. If I could go back 30 years ago - I would not be where I am today.

Good Luck....:)

Edited by 2ndTimeAround

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