Posted: Mon May 25, 2009 8:43 pm Post subject: Can we qualify for Rural Development Mortgage Loan
My husband's credit score finally made it to a 620 but mine is still below that at a 582. We have been preapproved for an FHA loan with an approve/ eligible and have a contract on a home. Our mortgage broker decided to try for the Rural Development with just him on the loan since my husband's score went up and the terms would be much better. His debt to income would be over 41% with just him on the loan. Will Rural Development look at DTI ratios over 41%? We meet all the other qualifications. Thank you!
The DTI requirements for an USDA rural development loan is 41%. They do not usually offer loans to borrowers with more than 41% debt to income ratio. There are exceptions though, where loans are offered to those having a more than 41% DTI. But in that case, the borrowers credit score and payment history has to be so good as to compensate for the high DTI. Since your husband has a not-so-impressive credit score of 620, it may be difficult for him to qualify for an FHA or a rural development loan with a high DTI ratio.
it is my understanding that most lenders will be on the liberal side of the coin when trying to approve loans, so that seems to indicate you're in good shape, regardless of which side of 41% he falls on. _________________ George M. Akerley
Loan Consultant
860-221-5044
Posted: Wed May 27, 2009 4:36 pm Post subject: Rural Development Loan
We just found out today that we were turned down for the RD because of derogatory credit since a bankruptcy which was discharged over 5 years ago. There were a couple of late payments on my husbands credit report due to his layoff last year but he has a 620 score now. So we are back to trying for FHA. We got an approve/eligible for FHA so we hope that one works out.
Posted: Thu May 28, 2009 12:47 am Post subject: APPLY FOR A LOAN
Hi, My name is Mr TONY BENSON. I am a private lender who give out
loan to private and corporate individuals. Have you been turned down
by so many banks? Do you need finance to establish your business? Do
you need finance for the expansion of you business? Or do you need a
personal loan? My loan ranges from personal to business loan. My
interest rate is very affordable and our loan process is very fast as well.
[Promotional text deleted as per forum rules. Thanks.]
This is totally a promotional post. I would like to inform you that promotional posts are against the forum rules and guidelines. I think the moderators of the forum would delete it. This is just an advice. I hope you don't take it otherwise.
tony, you have been warned not to advertise like that. if you want to be a member of the community, it would expected, and it would be nice if you would act according to the guidelines posted. _________________ George M. Akerley
Loan Consultant
860-221-5044
With a credit score of 620, it is possible for your husband to get an FHA loan. You can get an FHA loan 2-3 years after a chapter 7 bankruptcy. The bankruptcy you have on your credit is 5 years old. So this is not going to affect your eligibility. The late payments were due to the layoff. An explanation letter stating the reason for the late payments should be enough to convince the underwriter that the late payments were due to the financial hardships resulting from the layoff. Thus, I believe your husband does have a chance of getting an FHA loan.
So, you've finally been approved for an FHA mortgage. The interest rate is also quite good. It looks like you've got a good deal.
However, in my opinion, it will be worth your while to have an attorney represent you at the closing, to make sure things are done properly and no issues arise from it in future.
Thanks,
Jerry
Karen Toups Guest
Posted: Thu Nov 12, 2009 9:25 pm Post subject:
Well i was told bc my credit score was over 620 i would get the approval for RD however when it went through the overwriting approvel i was denied due to to my income is insufficient to sustain payments for the type and amount of credit requested. Do anyone have any idea what that means????
It means your DTI (Debt to Income) probably exceeds the 41%. Meaning that after they add in your mortgage, tax, etc. along with your current bills, car payments, credit cards, it makes you unable to qualify for the amount of the loan.
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