Good News! You do NOT need perfect credit to qualify for a USDA Home Loan! Whew! The minimum credit score requirements for a USDA Loan is 640 – however, there’s some room for “logic” with the USDA Loan Eligibility Requirements Credit Scores.
These days – we normally need a score above 640 to get the loan approved by Underwriters, because that is the minimum acceptable score that will go through the GUS Automated Underwriting System.
If you are NEW to the Credit game, meaning you are recently out of school and don’t have any BAD credit, you just don’t have a TON of credit – we can probably get a loan approved with a 620 credit score.
In general, you need 3 different trade lines with 12 months of payment history.
Equifax will verify your rental payments (assuming the lease was in your name) and calculate that as a trade line, however the other 2 credit repositories will not.
Here are some guidelines on what USDA Home Loan Underwriters will NOT take:
- Foreclosure within the last 36 months.
- Bankruptcy within the last 36 months
- More than one 30 day late in the past 12 months
- Outstanding Judgments in the past 12 months
- Two or More missed rent payments within the last 24 months
- Chapter 13 Bankruptcy – Case by Case review
- Delinquent tax liens
- Delinquent student loans
Have more questions about USDA Loan Eligibility Requirements Credit Scores ? Want to know if your credit score will qualify you for a the no money down home loans with USDA Rural Development Mortgage Loan, call Steve and Eleanor Thorne – 919-694-5058 we are NC’s USDA Home Loan Experts! We recently did a comparison of all no money down home loans available in NC, and we still think that for folks who are willing to live in less urban areas, USDA Home Loans are the best option!