The Home Buyer's Korner

Information presented should be used for educational purposes only.

June 13th, 2015

Guy looking up in color

GREATER AIEA/WAIMALU HAWAII

The Home Buyer’s Korner

Google+ RE Community

Google+ Mortgage Lender Community

Google+ General Contractor Communities

USDA Credit Score Guidelines

USDAUSDA Credit Score Guidelines will help you figure out if you are eligible for a USDA home loan. It’s important to know how USDA credit score guidelines work, so you can repair any issue the right way.

If you have a credit card or bank loan you have a credit score and it represents your creditworthiness.

Home buyers must be able to show a credit history that indicates a reasonable ability and willingness to meet and pay their obligations as they become due. This means:

  1. No 30 days late on an obligation within the past 12 months.
  2. You cannot have had a bankruptcy or a foreclosure discharge within the last 36 months.
  3. No more than two rent payments 30 days late or more within the last three years. If you do have one or two late payments, be prepared to provide a good explanation why it’s unlikely it will happen again.
  4. No outstanding collections accounts that don’t have payment arrangements established and a payment history of at least three or more months prior to signing a purchase agreement.
  5. No tax liens or delinquent federal debt without payment arrangements established and a payment history of at least three or more months prior to signing a purchase agreement.
  6. No accounts converted to collections in the past 12 months.

Generally, if a home buyer is applying for a USDA mortgage and has credit scores of 620 or higher, USDA’s guidelines are fairly streamlined, but your lender may require additional documentation.

  1. Adverse credit history need not be documented for federal debt or previous agency loans and your rental history rating will not need consideration.
  2. No actions will need to be taken and unpaid collection accounts will not be required to be paid off.

With a credit score of 619 to 580, home buyers historically demonstrate a higher likelihood of default on their mortgage loan and some lenders will simply not offer you a mortgage loan, but a few will under the right circumstances. A home buyer whose score falls in this range will be carefully evaluated for credit worthiness and one of those “look and see” procedures is your rent or housing histories. It’s important to note again that most lenders set 620 as the minimum credit score to offer a USDA mortgage loan. If you are working with one, they still need to get a credit score waiver from USDA and USDA will only issue the waiver if:

  1. Problems with paying back loans were temporary in nature.
  2. Beyond your control.
  3. Has been remedied and there is no likelihood of re-occurrence.

Home buyers with credit scores of 580 or below demonstrate a much higher rate of default on their obligations and it’s a complicated process to get approved, but it’s not impossible by a handful of mortgage lenders. I would however highly recommend working on boosting your credit score before seeking a USDA mortgage loan, if you fall in this scenario.

Of these handful of lenders I mention, none will lend to you even under the USDA program with a credit scores in this range if:

  1. You have been 30-days late in the past 12 months on any payment.
  2. They will, however, consider bankruptcy or a foreclosure in the last 36 months, if it’s the only reason your credit score is this low.

If you have no credit score, at least four non-traditional credit references will need to be your benchmark. They can a combination of and not limited to the following, with 12 or more months history. The exception is your rental or housing payment. A satisfactory rental or housing payment is a must and needs to have been paid by YOU; not your spouse, family member or significant other who isn’t applying with you on a USDA home loan:

  1. Rental or housing payments
  2. Utility payment records
  3. Insurance payments
  4. Payments to retail stores

You lender will get credit references from these creditors, but that alone won’t be enough. Be prepared to back up these non-traditional credit referenced with cancelled checks copies or money orders.

VISIT OUR GREATER AIEA/WAIMALU AREA

HOMES FOR SALE LISTINGS

Livingston Homes for Sale

FIND HOMES THROUGHOUT AIEA/WAIMULA HAWAII

HUD FORECLOSED HOMES IN & AROUND THE GREATER AIEA/WAIMULA HI AREA

USDA FORECLOSED HOMES IN & AROUND THE GREATER AIEA/WAIMULA HI AREA

FNMA HOMEPATH FORECLOSED HOMES IN & AROUND AIEA/WAIMULA HI

FIND MORE FORECLOSURES IN & AROUND WAIMULA HI

HAWAII HOME OWNERSHIP TOOLS

Your Home Purchasing or Refinancing & Renovation Tools,

Home Improvements, Home Renovations,

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase.

Here are just a few of the home improvements

you might consider with any Home Renovation loan

Repair or replace a roof

Install, replace or repair gutters and downspouts

Replace, repair or upgrade your HVAC system

Repair or replace plumbing

Install, repair or replace electrical systems

Kitchen remodeling (including the purchase and installation of appliances)

Bathroom remodeling, Full interior painting, Total exterior painting

Repair or replace a septic system and/or well

Disability access (wheelchair ramp, elevator, widen doorways)

Build, repair or replace deck, patio or porch

Basement waterproofing and finishing

Abatement/Stabilization of lead-based paint hazards

Replace old windows, Room additions, Finish an attic

Add a second story to your home

Replace a termite damaged sill plate (a water-damaged sill plate also)

Possible landscaping items such as correction of grading & drainage problems,

tree removal, repair a driveway and sidewalks

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Mortgage Loan Officers, Real Estate Agents & General Contractors are ready to assist you

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision-making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”. In the center of the screen you will

have the option to “Create A Printable PDF of the Presentation”.

START YOUR PATH TO HOME OWNERSHIP TODAY

FNMA HomeStyle FNMA My Community Mortgage FHA One-Time Close Construction Portfolio or VA home loan Homes for Sale REO Short Sales FNMA HomePath Properties HUD Homes USDA Homes Condominiums Co-OpsTownhomes Manufactured Homes Modular Homes Mobile Homes Log Homes Second Homes Investment Property 2-4 Family Custom Home Builders Custom Built Homes Luxury Homes General Contractors Home Improvement Experts Kitchen & Bathroom Renovations Real Estate Brokers & Agents Mortgage Lenders Federal Credit Unions Community Bankers Real Estate Listings Jumbo Investor Hard Money HARP HECM Equity Zero 3% 3.5% Portfolio Non-Warrantable Down Payment Assistance 96701 Aiea Heights Halawa Halawa Heights Halawa Valley Koauka Loop Pearl Ridge Waimalu Honohina Pl Honohina St Honohono St KAM HWY Poaha Pl Honomanu St Koauka Loop Kam Hwy KAMEHAMEHA HWY Maohu Pl Moanalua Rd Hoohalawai Pl Haaheo Pl Hoolauae St Pohue Pl Pohue St Pohuli St Moanalua Rd Mikalemi St Papalealii St Kanuku Pl Kanuku St Mikinolia Pl Mikioi Pl Kaokoa Pl Hukaa St Kaonohi Pl Kaonohi St Kapahulani Pl Auhau Pl Aumakiki Loop Aumakiki Pl Kapukapu Pl Aupunimoi Pl Hulumanu St Koauka Loop Uahi Pl Uahi St Ualo St Uao Pl Poko Pl Poko Rd Uhaloa St Ualo St Hapaki St Koauka Loop  Uwau Dr Kiawe St Olena Pl Olena St Koauka Loop Koauka St Olepe Loop Anounou Pl Ulu St Ululaau Pl Ulune Pl Ulune St A Kekoa Pl Alia Pl Hailimanu Pl Hapuku St Hapuu St Eke Pl AIEA STRM Iwaiwa St NAPUAHANI RD Kohomua St MOANALUA RD Koauka Loop Pali Momi St Hakina St Halakea St HALAWA HEIGHTS RD Halawa Dr HALAWA DR Halawa Heights Rd HALAWA HTS Welelau Pl Chester Way Kealaluina Dr Aliipoe Dr KOMO MAI Komo Mai Dr Hale Momi Pl Lipoa Pl Lania Pl LANIA WAY Maki St Moanalua Rd Lanikuakaa St Malae Pl Wilou St Moanalua Rd Leialii St Laelua Pl Moanalua Rd Ewelani St Wiliko St Oliwa St LII IPO ST Leihulu Pl Aiea Hts Dr KAUHALE ST Kaulahao St Kaulainahee Pl Naalii Pl Naalii St KAUPILI PL KAUPILI PL Olopana St Aheahe St Neki St Fernridge Pl Aiea Heights Dr AIEA HTS Aiea Kai Pl Aiea Kai Way Aiealani Pl Pahemo Pl Pahemo St Pahiolo St Nahele Pl Nahele St Nahiolea St Leke Pl Kaahumanu St Kaonohi St Kaonohi St Kaonohi St Inea Pl Iho Pl Ainanui Loop Kaahumanu St Kaonohi St Paihi St Komo Mai Dr Nakui Pl Lulu Pl Lulu St Kiawe St Iho Pl Lilia Pl Iho Pl Kaahumanu St Lilikoi Pl NALOPAKA PL Kaonohi St Komo Mai Dr Kaahumanu St Iho Pl Kaahumanu St IWAENA ST Iwaiwa Pl Iwaiwa St IWAIWA WAY Kaonohi St Komo Mai Dr Kaonohi St Iho Pl Kaahumanu St Kaonohi St Komo Mai Dr Kealakaha Dr KEALAKAHA RD KEALALUINA Kealaluina Dr Kaahumanu St Keanae St Kaahumanu St KIHALE PL Keapua Pl PLANTING STRIP Kaahumanu St MOANALUA RD HALAWA HEIGHTS RD NAPUAHANI RD OLOPANA Kilinoe St Kaahumanu St Iho Pl Analio Pl Pakalana St Apala Loop Pakonane Pl WAOALA Waoala Pl Apelekoka St Lupea St Palaialii Pl Kuawa St Piki Pl Piki St Piku Pl Piku Way PALAIALII PL Palaialii Way Heleconia LAKA PL Kuhao Pl Pono St Ponohale St Ponohana Loop Ponohana Pl PONOKAULIKE PL Ponokaulike St Ponokiwila Pl Ponokiwila St Akaaka St Akaaka St Kuini St Malualua Pl Malualua St Paleo Way Nanu Pl Holo Pl Holoai St Kulawai Pl Kulawai St Kulawea Pl Kulawea St Kulea Pl Pilikoa St Holopuni St Kulina St Keanae St KINOOLE PL KUPONO PL Kupukupu Pl Kupukupu St Kupuwao Pl POOHOLUA Pooholua Dr MANAKO Manako Pl Manako St Waiakea Pl Poopaa Pl Napuanani Rd Wailana Pl Onikiniki Pl Onikiniki Way Upapalu Dr UPAPALU ST Keikialii St Kipaepae St Kipikua St Puaalii St Moanalua Rd Moanalua Loop Moanalua Rd WAIPAO WAIPAO PL Leomanu Pl Uao Pl Koauka loop Koauka Loop KEKOA Kekoa Pl Iho Pl Ohaiula Pl Ohapueo Pl Aloalii St Puaalii Pl Puaalii St PUAALII WAY PUAANUHE ST Puaapiki St PUAHAU PL Puahoku Pl PUAILIMA ST PUAILIMA PL Puailima St Puakala St Puakika Pl PUAKUKUI PL Pualaa St Ohekani Loop Ohekani Pl Ohelopapa Pl Ohenana Loop Ohenana Pl PUAOLE PL Puawa Pl Ohiakea St OHIAKU ST Alolua St Ohialomi Pl Heen Way Alania St Kiawe St Oa St Iho Pl Ohiaku Street SALT LAKE BLVD Mahiko Pl Lalani St Lalawai Dr Mahipua St Opukea St Kihale Pl KIHALE ST Ipu Pl Ipuala Loop Ipuala Pl Kihewa Pl Kikala St Hoala St Hoapono Pl Hekaha St Puliki Pl Hele Mauna Pl Mahola Pl Heleconia Pl Meaala St Puluniu Loop Hiliu Pl Popolo Pl Kileka Pl Kilepa Pl Kilihe Way Kilihea Way Kilika Pl KILINOE ST Kiliohu Loop Kilipohe St Huakanu Pl Huakanu St Iho Place Naukewai Pl Lohea Pl Kaahele Pl KAAHELE ST Kaahumanu St Kaakau Pl Kaalo St KAAMILO PL Kaamilo St Kahaea Pl Lokowai Pl LOKOWAI ST Kahapili St Kahema Pl KAHILINAI Kahilinai Pl Kaonohi St IEIE PL Kaholi Pl KAHUA PL Auamo St Nohoalii St Nohoaupuni Pl Nohua Pl Iho Pl Iini Way Kaimakani St Kaimu Loop Palula Way Lauhulu St Laulima St LAUOLE Lauole St ILIEE ST Iliee Pl ILIEE ST Kalaloa St Kalamoho Pl STREAM Kaahumanu St Kalawina Pl Hoio Pl Hoio St Pamoho Pl Hokea St HOKIO PL Kalike Pl Puumakani St Kaonohi St

Join us at Real Estate Social

Comments are closed.