Posted on: 19th Nov, 2010 12:41 pm
If someone has a judgement on their credit report however, meets all the guidelines required under USDA are they still able to obtain a home loan. Income to debt ratio is excellent and currently don't have any tradelines. Please help.
Hi Michelle,
It depends on the status and type of judgment.
This is straight from the USDA guidelines:
All federal judgments must be satisfied prior to closing.
If it's not a federal judgment, an underwriter may still require that it paid prior to closing your loan because that judgment can end up as a garnishment of your wages which can affect your ability to repay the mortgage or it can end up as lien against the property which can cloud or affect the title to the home.
It depends on the status and type of judgment.
This is straight from the USDA guidelines:
All federal judgments must be satisfied prior to closing.
If it's not a federal judgment, an underwriter may still require that it paid prior to closing your loan because that judgment can end up as a garnishment of your wages which can affect your ability to repay the mortgage or it can end up as lien against the property which can cloud or affect the title to the home.