We went to the bank to get pre approved for a rural development loan and we were approved, until we signed the contract & paid the earnest money

Asked by Shanna Brown, Wed Jan 25, 2012

OK, I went to my bank and asked to be pre qualified or pre approved for a RD loan in alabama. They took the application and called 2 days later to tell us we were approved. We signed the contract on a house & paid the earnest fee. Our bank got the papers from the real estate agent today, then called to tell us we were not approved for a RD loan and could not be with my husband's credit score at 627. I was VERY clear my husband's score was only 620 and that we wanted ONLY a RD loan. They admitted they made the mistake, but my question is, do all banks require a credit score of 640 for a RD loan? We were told 620.

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Thu Jan 26, 2012
The general industry minimum credit score for USDA is 640+. Scores of 620-639 are more by an exception basis. Either the lender you are working with does not offer it below 620 or he does not meet USDA guidelines.

Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | VA | USDA | GA Dream | Jumbo Financing
Web Reference:  http://www.rodneymason.com
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Elliott R. O…, Agent, McLean, VA
Thu Jan 26, 2012
Most lenders only require a 620 for RD loans but there is more to it than that. Unfortunately not many individual loan officer are familiar with the program and how to properly pre-approve you. Here is some more information on the RD loan: http://www.trulia.com/blog/elliott_r_oliva/2011/07/what_is_a…

Here are some details on the pre-approval process so you know what to look for: http://www.trulia.com/blog/elliott_r_oliva/2011/12/pre-apppr…

What state are you in by the way??
0 votes
FSBOsuccess, Home Seller, 28590
Thu Jan 26, 2012
You were pre-approved and not approved fully. You never know if you are fully approved until all the paperwork is turned in, reviewed by the underwriter and approved (or not) and then sent on to the USDA who has final say. A bank will also not go by what you say is your or your husband's credit score.
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