Sassime40, Home Buyer in Lehighton, PA

USDA Loans

Asked by Sassime40, Lehighton, PA Thu Mar 1, 2012

If you have an buyer and a co-buyer do you combine the debt to income ratio's to come up with a score? Is it true that if you have a credit score of 650 the credit check is limited? Do you have to make under a certain income to qualify? Can you own another home?

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Web reference:


Five Stars, Other Pro, Jacksonville, FL
Sun Dec 6, 2015
620 credit score should be ok to get approved. Income limits will depend on county, household size among other things. Please contact us below if we can help.

Five Stars Mortgage
National Home Loan Resource
7 days week - 9am-8pm
Ph: 800-871-2636
0 votes
Joel Lobb, Mortgage Broker Or Lender, Louisville, KY
Wed Oct 16, 2013
As a rule of thumb, however, a credit score below 640 will make buying a home very difficult. A FICO score below 640 is considered sub-prime. In the past there were mortgage companies that specialized in sub-prime mortgages. Because of the challenges in the credit market over the last year or so, however, sub-prime loans have become difficult if not impossible to obtain.
A FICO score between 600 and 640 is considered fair to good credit. But keep in mind, this range of credit scores does not guarantee you will qualify for a mortgage, and if you do qualify, it won’t get you the lowest interest rate possible. Still, to buy a home aim for a score of at least 640, recognizing that other factors weigh in the decision and that some banks may require a higher score.
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Joel Lobb, Mortgage Broker Or Lender, Louisville, KY
Sun Sep 9, 2012
Overview of the Guaranteed Rural Housing
Loan Program
 This is the lender’s loan. Lenders underwrite and approve loans using their own forms   
along with some Rural Development (RD) forms.
 100% financing.  No down payment required. The GRH fee may be included in the loan
amount in excess of the RMV for up to 102% financing.
 Guarantee fee is 2.0 of loan amount.  
 Single family homes, townhouses and approved condos in eligible rural areas.
 Income limits ‐ 115% of the HUD median income limits.
 Repayment Ratios: PITI = 29% & total debt ratio = 41%.  Ratio waivers are available  w i t h
compensating factors.
 Loans saleable in secondary market and to SHFA.
 Closing costs can be included in the loan (points cannot be included unless applicant is
low income). If sale price is less than appraised value borrower can include closing
costs up to appraisal amount.
 No limit on seller contributions.
 Fixed Interest Rates ‐ Rate may not exceed the FNMA 90 day yield rate plus 60 basis
points rounded up to the next full quarter percentage. See Fannie Mae website:
 30 year term.
 No loan amount limit.

0 votes
Eric Trissel, Mortgage Broker Or Lender, Wyomissing, PA
Fri Apr 6, 2012
If you have an buyer and a co-buyer do you combine the debt to income ratio's to come up with a score? -------> If your question is, "Do both borrower and co have to count there debt to income ratios?" The answer is "Yes".

Is it true that if you have a credit score of 650 the credit check is limited? ----->There is no limited credit check. We can do a USDA loan down to a 620 credit score. You just need to have a few established trade-lines (open accounts listed on your credit).

Do you have to make under a certain income to qualify? ----->YES

Can you own another home? Not a single family. ----->The USDA will allow you to own one single-wide. In this case you can still qualify. If you own a single family home, you will have to get it sold before being able to close your USDA loan.
Web Reference:
0 votes
Elliott R. O…, Agent, McLean, VA
Fri Mar 2, 2012
Sass, the USDA loan is a great product and the key is working with a loan officer that has experience closing them.

First of all most lenders require a 620 or better credit score to be eligible but there are other standard guidelines that must be met. Contrary to what Benny said down there, there are real guidelines for this program and they are pretty straight forward, but you need to speak with someone that actually originates and closes these loans to get some insight.

In the meantime you can read more about the program here:…

So as I mentioned in the article, this is a moderate income loan program so in essence you can't make too much money. I know that sounds weird. So if you want to get a general idea of what the income limits are for your scenario you can use this link from the USDA to get some general info:…

Regardless of what kind of results you get from the income eligibility page, make sure you work with a loan officer that can properly review your credit, income & assets to determine if you qualify for this program.

The Pre-Approval process is one of the most important steps in buying a home and you need to know what to expect. For more details on this step please take a minute to read this:…

If you would have more questions about the program please feel free to contact me at your convenience. I have closed many USDA loans over the years and I would be more than happy to point you in the right direction. Thank you and best wishes.

Elliott R. Oliva
Mortgage Banker
Stearns Lending, Inc.
202.681.1636 direct
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Fri Mar 2, 2012
USDA is a niche product, not all loan officer are well versed, make sure the one you apply with has actually closed one.
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James Gordon…, Agent, Hamilton, OH
Fri Mar 2, 2012
1 If you have cobuyers yesyou cobine income to come up with the DTI.

2 Credit score is differant than DTI.

3 there is no such thing as a limited credit check.

4 You do need to be under a certain income but the amount will vary by location.

5 You can own another home but it can not be in the area and the home you are purchasing must be for your primary residence. (Area from old home and ability to pay both mortgages subject to reveiw by underwriting)
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Benny Smith, Agent, Pittsburgh, PA
Fri Mar 2, 2012
No No and yes. Every credit history asset balance is different and each lender requirements are different. To make that worse there is no real guidelines anymore. It is mostly what a lender wants to do today. As far as regulations go. There are some things lenders cannot do such as approvals based on race but there is nothing that says a lender will approve if your score and debt to income is above a certain level. What all this means is simple. Go to a lender that works with your agent and apply. Before giving up any info get a commitment that they will send you copies of what they get on you. This is the info that matters not what you can pay for online. Then you can ask questions that relate to you and your situation. I had a person who had good scores, great income, low debt to income and could not qualify after going to six lenders. The name was Smith like mine and there were two reports under the same SSN. Lenders would disapprove and not say why until getting the committment..
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