Chances of getting a USDA rural development home loan?

We are first time home buyers trying to purchase a home. We live in Wisconsin. My husband has good credit, my credit is horrible so our loan officer said he could do the loan by himself. He received pre approval, we found a home & got our offer accepted. We are going through Inlanta Mortgage for a USDA loan. Annual income is $39,465, PITI ratio: 21.3%, Total Debt ratio: 25.8%, (so should the DTI be 5/25.8?), our total monthly payments is $148 (student loans) , credit score is 655 (this is all taken right off the paperwork from the loan officer). Not sure why it only shows one credit score but I know all three are over 620. So what are the chances of it getting approved? I'm a nervous wreck and worried my bad credit will stop it from going thru.

The usda.gov website says: Qualifying ratios are 29/41. As for it being for low income, our income is within the guidelines for a household of 5.

4 Answers

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  • Bob
    Lv 6
    7 years ago
    Best Answer

    Everything you have said indicates your husband should be approved. The middle or median of your three scores is used for qualifying, so that is the only one that matters and 655 is high enough. The qualifying ratios you noted are accurate and you fall well within the guidelines. As long as your household income meets guidelines your "horrible" credit will not be a factor.

    Source(s): Licensed Loan Officer in Ohio
  • 3 years ago

    Getting A Usda Loan

  • 7 years ago

    My two cents: 0% down USDA loans should be illegal.

    Horrible idea.

    No further comments.

    Rural locations, hard to sell, your kids may have to spend an hour in a school bus getting to high school in the middle of winter.

  • 6 years ago

    If you would like to see if you would qualify for a USDA or other potential 0$ loan, please feel free to contact me.

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