USDA loan requirements?

[simx4]

Does anyone know if the government has changed their requirements for the USDA loan after bankruptcy?

Last year we were told that we needed to be 2 years post-discharge. This year, we were just turned away by a USDA-approved lender who told us that the govt. has changed their requirements to 3 years post-discharge.

My FICO is 770, DH's is 650 (he's the one who filed) - we've had 0 lates, 0 missed payments in the 2 years since. We do have a car loan and a small amount of credit card debt. Someone legit has got to want to give us a loan, right?

[Flamingo]

You have to remember that with a BK on your hubby's records, a lender does not have to extend you credit if they don't want to. While it's tough to see people posting on here that they get loans/credit cards/mortgages shortly after filing, there is the other percentage of folks who just get denied. You will eventually get a loan but since you just received this denial, watch the amount of inquiries as to trying to find a lender to lend to you and let some more time increase your hubby's score. Keep paying everything on time and it will all work in your favor. Try to keep the credit inquiries down for a while as they can also lower scores.

[Ugh07]

Does anyone know if the government has changed their requirements for the USDA loan after bankruptcy?

Last year we were told that we needed to be 2 years post-discharge. This year, we were just turned away by a USDA-approved lender who told us that the govt. has changed their requirements to 3 years post-discharge.

My FICO is 770, DH's is 650 (he's the one who filed) - we've had 0 lates, 0 missed payments in the 2 years since. We do have a car loan and a small amount of credit card debt. Someone legit has got to want to give us a loan, right?

Its not necessarily the Program but the layers of guidelines added on by the actual lender. Thats why some people are able to go USDA immediately and some are having to wait. Its because the lenders in question have different requirements than USDA

[simx4]

Thank you for the input - I didn't realize that it really comes down to what the lender is okay with, government program or not.

[newimges]

My husband and I applied for a USDA loan in February 13 months after BK7 discharge. We submitted our application directly to the USDA office in our state without going through a lender and we were denied because of the bankruptcy being less than 2 years from discharge. I was surprised to see that people on here were getting approved less than 1 year from discharge.

We were pretty discouraged but went to the credit union and talked to the manager and explained our situation and we got a mortgage loan through them 15 months from bankruptcy discharge at 4.75% for 15 years. We had $27,000 for a down payment and credit scores in the mid 600's so there is hope for those wanting a mortgage less than 2 years out of discharge. We closed on our new home last Friday