USDA loan-income approved, ratio at 45% was told cant get the approval. Credit was 644, now 629. Help in PA.

I would suggest that you have your credit report analyzed to determine what if any updates would be required in order to improve the credit score, or switch to an FHA loan.

The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. , not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

This can be done with the 629 mid score.I also would like to point out that a 629 can be done FHA as well with a 43% debt to income ratio with my company. With the score and debt there are a few very good options I can offer you.Give me a call we can discuss.724-791-3100 I work until 9 pm. Amber Bushnell.

With the Debt to income of 45% with the current credit scores is why you're having a hard time getting this loan through. Do you have assets available for this transaction? If you need some assistance contact me at 610-568-2063 I'll get you into USDA with your participation.

The OFFICIAL maximum debt ratio for USDA is 41%. You may slightly exceed that limit if GUS, the USDA computer that all USDA loan applications are run through says it is OK. But to do so, you must be a strong buyer. A 644 and 629 scores indicates a weak buyer. Overtime can be used for qualifying income only if he shows a two year history of receiving it, and only if the employer indicates it is likely to continue. The overtime is then taken as an average of what he has received over the past two years, plus current year-to-date. Finally, all mortgage related credit reports run within a 30-day period only count as one. So contrary to popular belief, that didn't do anything to his score.

I'm not sure what I can do but I will be happy to talk with you to see what options are availabale. There is obviously a lot of different pieces. Please call me at 610-308-9001 and I will what I can do to help. Ed Fallon, NMLS#144708, Univest Bank & Trust Co.

You need to ask your lender to call the Rep at USDA to see if they can find out exactly what is needed so you don't waste time and money. I assume that with a little persistence, you can find a way to get the Seller to help if needed by increasing any closing costs already being covered to help "Buy Down" the Interest Rate, which can help lower your DTI (if that is the issue). Other than that, a reduction in Sales Price may be needed. Using Over Time is acceptable if there is a 2 Year History to Average it out. If not, it will not be used. If your husband was working 50 hours per week guaranteed and could be verified with an Employment Confirmation Letter from the Company, I'd assume the Underwriter could use that, even if the Over Time income was not calculated, but instead they could use regular pay. I would start by requesting your Lender call the USDA directly for help with the GUS Automated Decision and then move on to seeing if an Interest Rate Buy Down Option helps your loan approval, followed by Lowering the Sales Price if needed. I don't think the Seller wants to start this process over again assuming the cost is not too considerable. Good Luck!

Hi Biker, Anyone with experience closing USDA mortgages knows that the issue you're running into is this. GUS has not been "approving" USDA loans when the score is under 640 for at least a year. USDA will allow either a credit waiver or a ratio waiver but never both on the same file so because your score has dropped and you're no longer approved through GUS you're going to need a credit waiver which means your debt ratios need to be 41% or less. If you can get your scores back up to 640 you wouldn't need the credit waiver with a GUS approval which would make you eligible for a ratio waiver. You mentioned that you had some money but used it to pay off debt. If you paid off debt and the accounts closed as result, that maybe the main reason why your scores went down but that's a whole other Oprah. Please feel free to contact me for more information or help. John Burke | Senior Mortgage | Great Plains National Bank | Austin TX | http://www.usdamortgageonline.com | (877)228-9069 | Lending in ALL 50 states |