Update on Everything, Continued....

Ok, so let me tell you a little about this USDA Direct Rural home loan that we first applied for in January and are again applying for in August.  Its really a great program, its for low income families to acquire a home in a rural area, the most your family can make in a year is like a little over $40 k.  First you apply with the pre-qualification, which we did in January and got turned down for.  we got turned down because we had items on my husbands credit that were in collections, so we had to pay that off and have 6 months good credit before we could re-apply, that's why we cant reapply until august because it will be 6 months from when we payed off our debt.  now we were told that with most places it would be a problem to pay off all our debt and not get a credit card because then we would have no credit history at all, but they told us that they really don't look at a credit score, they just look and see if there is anything on your credit report and if anything that is on it is paid up to date and everything... if there is one thing in collections on your credit report even if its $1 you will get denied.  they told me that because now we will have no credit history at all that all we have to do is supply them with all of our bills to show that they have been paid and are up to date and rent receipts to show that our rent is up to date and that will establish credit with them.  So August 1st i will be mailing in a bunch of stuff, such as bank statements, cell phone payment history, rent receipts, a letter from our landlord saying that we pay our rent on time every month and so on... I'm so excited to re-apply... the man that i recently talked to at the USDA home office in Cortland said that as long as i supply all of that information and our credit is recent and clean that we should have no problem qualifying for this loan, which means that hopefully by the end of the year we will be in our own house!!!  OK so i little more about this loan, you need NO MONEY DOWN!!!! you don't need to pay any closing costs or anything like that and because of our income we will start off paying 1% interest, the house will close at the current interest rate, that is somewhere in the high 4% but until our income increases we wont pay any higher interest than we can afford. It really is a great program for low income families.  Now I feel I must at least mention the other USDA loan that is the USDA Guaranteed Rural loan, its for somewhat higher income families that have better credit and the income limit is like around $75k.  Its still from the government but you go through a mortgage broker where with the direct loan its a government subsidized program that's directly between you and the government.  I will look later today for the website so that you can read up on it if you want.  well i need to go for now and get some lunch for myself and my son, ill try and post that website later today, ill post the phone number and address too for anyone who is interested in looking into this.