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USDA Rural Home Loan Credit Requirements
USDA Home Loans do not require perfect credit. However, a minimum 620 credit score will be required.
USDA Home Loan - Credit Requirements
No verification of rent required with 660+ credit scores
Non-traditional credit is acceptable - A minimum of 3 references are required with no additional risk factors 
Credit score of 620+ may be considered acceptable, unless any of the following - Federal Liens
- Foreclosure or pre-foreclosure activity within 3 years of application date.
- Bankruptcy Chapter 7 within 3 years of application date.
- Chapter 13 completed within last 12 months of application date.
- Mortgage lates within the last 12 months from application date
"Indicators of unacceptable credit"
- More than one 30 day slow pay within 12 months of application date
- Completed Foreclosures or Foreclosure activity within 3 years of application date
- Outstanding tax liens or delinquent government debt
- Outstanding judgments
- More than 2 slow rental payments within 12 months of application date
- Any accounts converted to collection within the last 12 months of application date or any collection due and payable no matter the age, etc.
Bankruptcy and Foreclosure
- Unless extenuating circumstances can be documented, ALL Chapter 7 and Foreclosures must have been elapsed or discharged for 3 years from the date of the application.
- Chapter 13 Bankruptcies must have been discharged for 1 full year from the application date
Credit Waivers ARE allowed for derogatory credit (required for credit scores ranging 620 to 639) - Supporting documentation required to show circumstances for derogatory credit were beyond customer's control, temporary, and have been removed
Collection Accounts
- Collection accounts are not required to be paid with 640+ credit scores and documented compensating factors
- If the credit score is less than 640, the applicant must document circumstances surrounding the collection. If there were extenuating circumstances to cause the collection account, then an underwriter can determine if the collection account must be paid off or left outstanding. If the credit score is 640+ no derogatory credit explanations or documentation may be required
Get The Very Best 100% Mortgage Loan with Homestar Financial Corporation,
Georgia's #1 USDA Lender
Georgia's #1 USDA Lender
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