Most direct lenders have this formula: 640 + GUS = no overlay.
I might be wrong.
If you a foreclosure or pre-foreclsoure within the last 36 months, then USDA requires that all lenders do a Manual Underwrite of the file. A GUS approval would only be acceptable to USDA after 36 months has elapsed.
Below is an exerpt from the USDA Underwriting Manual:
"Any applicant with a foreclosure or pre-foreclosure activity in the previous 36 months, Chapter 7 bankruptcy discharged in the previous 36 months, Chapter 13 bankruptcy that has yet to complete repayment or has completed repayment within the previous 12 months, and/or late mortgage
payments in the most recent 12 months must submit all supporting evidence along with the credit waiver regardless of credit score. The lender must document the compensating factors as well as the rationale that was applied in the course of making a decision to approve the loan in their permanent loan file."
Since you are only a little over 2 years out, USDA would require a manual assessment. For anything within that time frame extenuating circumstances for that derogatory activity would be required. This is generally limited to serious illness or death of a primary wage earner. According to HUD, Divorce is not considered an extenuating circumstance. The inability to sell the property due to a job transfer or relocation to another area does not qualify as an extenuating circumstance either.
Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing.
Phyllis Adkins 678-592-9973
We can run and get you closed if we get a GUS approval. Close as soon as the USDA underwrites and approves the loan which must occur after we underwrite it.
Call me at 678 467-9959 if you need the help.
Timothy Brown|LPO Manager
Evolve Bank & Trust
11605 Haynes Bridge Road Suite 125| Alpharetta, GA 30009
678.468.5626 x110 | fax 678.935.1156 | cell 678.467.9959