Home Buying in 78503>Question Details

Tfallon680, Home Buyer in Charlotte, NC

my fico is 638 and I recently had a cell phone bil go into collections, can I still get approved for USDA loan.

Asked by Tfallon680, Charlotte, NC Thu Nov 29, 2012

my credit history has been pretty good the last 2 yrs,

Help the community by answering this question:



First of all...is your FICO 638 BEFORE or AFTER the new collection account??? You would be required to pay the collection off in full and have it reported paid in full. Then we wait to see what that actually does to your score. The reporting of a new collection automatically lowers your score. When you pay the collection off, it usually lowers it again. Then the longer you maintain good, on-time payments, the closer you will get to becoming eligible for a USDA loan. USDA now requires all credit scores to be a minimum of 640... Let me take that back...All of the investors will no longer buy loans with scores under 640.

I would be more than happy to work with you on your credit. Sometimes it's a slow process. The general rule of thumb is most government loans require on-time payments within the last 12 months...but I have gotten many loans approved in a much shorter time. My best/earliest guess, without seeing your credit, would be 90 days...

Please call me at 832.419.2767 or 1.877.933.0036 X 300 or ask for Beverly
0 votes Thank Flag Link Thu Nov 29, 2012
my fico score 638 was after that was put on
Flag Fri Nov 30, 2012
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