Are there any lenders that will lend in Texas for USDA loans with a middle credit score lower than 640? If so what is the lowest?

You certainly have options. I would advise you to speak to several lenders and choose the right fit for you. Best Of Luck!

Each lender will have what are called overlays and those are conditions that must be met specific to that lender, your credit score seems ok based on the lenders I work with here in SC. Henry J is not correct when he says that the loan must close by 10/1/12 to be included in the old fee schedule, you simply must have the loan conditions commitment from USDA, not from the lender, on or before 9/30/12 to be included in the old fee schedule which is a 2% up front fee for purchases and a monthly fee of 0.3% of the loan amount. After the 9/30/12 date the monthly fee will be 0.4% and the 2% up front fee is the same...but he is correct when he says the time to act is now because waiting will probably cost you.

There are lenders out there that will accept under 640 for USDA... but you will have to be fully underwritten twice.. and that might be tough... if you have 3.5% down, you can go FHA, less stringent guidelines, and multiple lenders who will do 600 to 640 credit scores. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Yes Punkin, There are lenders that will do the USDA Loans below 640. These loans are more highly scrutinized and take much longer to Underwrite. Also as of 10/1/12 USDA is raising their mortgage insurance premiums as well as reclassifying areas as ineligible. Because of population growth areas surrounding the DFW Metroplex are especially hard hit. If you have a property in mind now is the time to act. If a property does not close by 10/1/12 USDA has stated that the new Mortgage Insurance rates apply and if post 10/1/12 the property is in an ineligible area then you will have to use FHA. Currently USDA is taking more than 20 business days to process. This is on top of the time the lender requires to underwrite the loan. I'd be delighted to discuss with you how to get you into a home under the old program. However time is of the essence. Sincerely,Henry J Daniels - Sr. Mortgage Banker & CMPSI Certified Mortgage ProfessionalCertified Military Housing Specialist "Educating you to make the right financial choices for your family today and tomorrow" Direct/Text: (936) 228-1944

If you are that close to a 640 I bet with a small amount of quick work you could get your scores over the 640 mark. One of our Texas branches could work with you on something like this. www.castlecookemortgage.com Find the branch nearest to you.

I have a referral for you, someone who has been lending in texas for over 20, years email me at yourloanpartnerforlife@live.com