Home Buying in Charlotte>Question Details

Tfallon680, Home Buyer in Charlotte, NC

Getting a usda loan, first time home buyers.

Asked by Tfallon680, Charlotte, NC Fri Aug 23, 2013

If I have a collection of $7000.00 that is 5 years old for breaking a rental lease on my credit report and that is the only bad thing can we get approved for a usda home loan? My husband and I both scores are at 640

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I just want to thank everyone who has answered my question, I got the $7000 collection down to $1700, we closed on our new home in January. My best advise to anyone is DO NOT PAY A CREDIT REPAIR PLACE FOR HELP. We paid close to a $1000.00 for my husband and I and all they do is dispute things they do not try to help settle anything and do not tell you that it is against the law for them to settle anything on your behalf. It was a waist of money. I settled the collections we had and got our credit score from a 500 to a 650 just by a secure credit card, keeping the balances low. Thank you again for all the advise
0 votes Thank Flag Link Tue Feb 25, 2014
Good advice. Congrats on the new home!
Flag Tue Feb 25, 2014
I am sure you can find a lender out there that will be willing to help you out with that credit score. Although, you should work on your credit score because it will only be to your future advantage. The most effective way to fixing your credit score is to pay your revolving credit card balance and debt. Once you've had a collection on your credit there isn't much that can be done in the short run. It is best to pay back any collections as soon as possible. So as time goes on the collection will become more insignificant to your credit score and will help it return to a better score.

I hope this helps and good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
0 votes Thank Flag Link Mon Feb 24, 2014

you might be able to get a loan with USDA. part of it will be how they view the length of the rental lease break, how it shows up on your credit report, and what your credit has ben since then. There are a lot of variables that play in to whether you can get a loan with USDA besides just having that on there. I recommend you talk to a mortgage lender and have them pull your credit report and see what is how's and let them make a recommendation on what they can and cannot do.

I recommend Chris Ayer at Coldwell Banker Mortgage. he will give you an honest answer and let you know if you can or cannot get a USDA loan. It does not cost you anything to talk to him. The best way to reach him is at 704-771-3954 or chris.ayer@mortgagefamily.com

Dave diCecco
Coldwell Banker United
0 votes Thank Flag Link Fri Aug 23, 2013
Hopefully you have a perfect rent history since then as that would help a lot since the collection was housing related. It depends on the overall strength of the file but it is possible to get that done without paying off the collection. There will need to be a very good explanation as well. If you would like to speak more in detail on this, feel free to call.
0 votes Thank Flag Link Fri Aug 23, 2013
Hi there!

Give me a call and we can discuss this more. I have some ideas regarding that collection, that should be enough to get you in a home ASAP.

I'd love to assist you with this and get you connected with a local lender who can run your numbers and tell you exactly what you approve for.

Michael Bowman
Benham Real Estate Group
0 votes Thank Flag Link Fri Aug 23, 2013
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