Credit Scores Requirements for USDA Home Loans
Currently there is no minimum credit score requirement, however scores below 620 may require a more stringent review of the credit history along with documentation to support the lower credit scores.
This review would require looking at the most recent 12 months rental history. Possibly providing a written explanation regarding the lower credit scores. This letter is very common and is written to establish your intent for good credit. The letter should explain the reasons behind any negative items on your credit report as well as explain that the circumstances surrounding these items were temporary, beyond your control and you have started and/or made progress towards correcting them.
Items such as medical collections, a missed payment or perhaps you were layed off for a short time, had an illness or death in the family. These are very common and it is understandable that people have things in their lives that can effect their finances and credit history.
That is one of the great things about the USDA Home Loan - it is what we like to call "make sense" underwriting.
On the flip side scores 620 and above are considered to be a good score and in some cases may allow for a few dings such as a late payment or owing collection on your credit with no review at all.
Please remember that this is just a basic guide to help you learn about USDA Home Loans. You should never assume that you may or may not be eligible to purchase a home through this program without first speaking to a qualified USDA Lender.
Looking for a new manufactured home with property combination. Trying to figure out if this loan applies to that situation...
Posted by: www.facebook.com/profile.php?id=1301297682 | September 17, 2009 at 10:02 AM