Best tips to get a USDA Home Loan

Best tips to get a USDA Home Loan

Here are the best tips and advice to get approved for a USDA Home loan. If you cannot get approved in the beginning, do not worry, we can work with you and come with solutions to get you approved. There are several loan programs available.

  • Make sure you have two-year employment history. If you just started a job and getting paid with commission, overtime, bonus, you will have to wait two years to show a history of earning this type of fluctuating income.  Now, do not get confused. If you have a two-year history of earning bonuses, commissions, overtime and you to go another job that has the same pay scale then this is fine.
  • If you just got out of school and started working this is fine. School counts towards work history.
  • If you were out of work due to an injury, illness, pregnancy or extenuating circumstance this is fine.
  • If you were an employee of a company and then switch to self employed then you have to wait two years.
  • Don't move money around. Keep as much money as you can in your bank account. Don't shuffle the money around into other accounts.
  • Be careful with e NSF charges. If you have too many of these it may affect you getting approved for a loan. Keep a positive bank account balance.
  • Try to aim for at least three accounts in good standing on your credit report. If you only have one account open like a best buy card, try to get two other types of credit open, don't charge them, just have them open for about 6 months. Underwriters like to see three open accounts.
  • Pay down any revolving debt that is 50% of your high credit limit, don't max out credit cards and wonder why your credit score has gone down
  • Keep your credit looking good before applying; no collections or late payments recently, do your best to avoid this.
  • If you rent, pay by check, don't pay by cash, underwriters like to see paper trail of rent payments
  • Be careful with your tax returns, alot of people these days work a full time job and then own a side business. Well this side business could affect you getting a USDA home loan. If you have excessive losses, the USDA underwriters will deduct the losses from your business out of your full time income salary and generally once this happens you don't make enough income to qualify.

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