What are USDA loan credit score requirements?
With so much emphasis on credit scores, it is important to remember that while a certain credit score can open the door to USDA loan eligibility, it does not guarantee approval. In fact, USDA loan credit score guidelines no longer have a defined minimum credit score.
Also, don’t forget to download our “USDA Blueprint for Success.” It is designed to walk you through the USDA loan process, step-by-step, and is great to share!
What are USDA loan credit score requirements?
USDA guidelines state, “a validated score does not indicate the applicant has an acceptable credit history. A validated score confirms that one applicant has an eligible minimum credit history.”
With no minimum credit score defined, lenders may establish their own minimum credit score requirements which can vary from lender to lender.
Additionally, USDA guidelines state that the following tradelines are eligible to validate the credit score and may be open, closed, and/or paid in full:
- loans (secured/unsecured);
- revolving accounts;
- installment loans;
- credit cards;
- collections;
- charged-off accounts; and
- authorized user accounts where additional qualifying criteria have been met.
In summary, meeting a certain credit score will help you down the path to USDA eligibility, but to gain approval, potential applicants will be required to meet credit reputation requirements.
If you are having trouble with another lender, please take advantage of the Metroplex Mortgage Services USDA Approved Lender 2nd opinion service, where you can get access to an expert 2nd opinion which is great for both pre-qualifications and those loans that are currently in progress.
