From Bankruptcy to home ownership in 24 months with a USDA Home loan
Next up in our real life customer success series, we show you how one of our customers, just a little over 24 months following a chapter 7 bankruptcy, was able to move into their dream home – once again, all thanks to the USDA Home Loan program. Read on to learn how our senior loan officer, Katie Stover, had the opportunity to work with this customer in fulfilling their dream.
“When it comes to helping our customers in these tough economic times, you need the ability to think outside the box. Prospective home buyers have been hit hard in recent years, and as a loan officer in the mortgage industry, you want to help them overcome any past mistakes, so that their future is bright.
My client, “Jason Jefferson” is a great example of the lengths that we are willing to go in order to ensure that this comes true, regardless of how long that may take. When Jason came to us, he had filed for a Chapter 7 bankruptcy in his past. He also had a foreclosure included in that bankruptcy due to an Adjustable Rate Mortgage on his prior home. The good news is that he did have a stable job and had started to rebuild his credit – which is why I felt he was a credible borrower and worth fighting for.
When I first pulled his credit it was slightly lower than is normally ideal for a USDA Home Loan. This was mainly due to his Chapter 7 Bankruptcy only being discharged 24 months prior. As a senior loan officer, I knew that we needed his score to be 640. I thoroughly reviewed his credit and found a few areas we could focus on to get his score up quickly. For instance, Jason was waiting on a tax refund and he used that tax refund to pay down two credit cards so that we could do a rapid re-score on his credit. After the re-score, his score jumped up to 650, which allowed me to submit his USDA Loan application for approval.
Of course all of this did not happen overnight. The re-score process took almost four weeks as we had to wait for the taxes to come in so he could pay his accounts down – and the whole thing took place two years after the bankruptcy had been discharged. But in the end, Jason was able to qualify for the home of his dreams.”
The USDA Loan Agency is here to offer you the same level of service. Our certified USDA Loan agents will work with you and answer all your questions. Contact us today to get started!