What USDA minimum credit score qualifies you for a USDA home loan?
When qualifying for a mortgage, everybody knows that your credit scores are critical, but depending on your credit, a certain bureau may not even be reporting a score!
That’s why I’ll be discussing the USDA qualifying credit requirements along with what solutions are available when credit scores are not reporting.
USDA Minimum Credit Score
It’s important to remember that a certain credit score does not guarantee approval, but achieving a minimum score does open up the range of potential eligible loan programs with higher scores and stronger credit profiles contributing factors.
In fact, USDA credit score guidelines no longer have a defined minimum credit score. However, they do require that an applicant has a validated credit score.
USDA guidelines also state that “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.” Thus, even though USDA guidelines do not have a defined minimum credit score, lenders may establish their own minimum credit score requirements. This can vary from lender to lender.
Non-Traditional Credit Report
Non-Traditional Mortgage Credit Report (also known as Alternative Credit) would consist of verification for accounts such as water, electricity, phone, cable, etc. for at least the past 12 months with on-time payment history.
While USDA loans offer high credit qualifying flexibility, a minimum credit reputation is required in order to determine eligibility.
Don’t let the details overwhelm you because that is what we are here for! As a USDA approved lender, we can walk you through the qualifying steps and explain the details from A to Z.
Whether it is the doctor or a mechanic, 2nd opinions are always great, and that goes the same with mortgages which is why we have a free 2nd opinion service dedicated to these requests.
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Whether you are under contract or in the pre-qualification stage, just call or email with your scenario and take advantage of our lending expertise.
I want everyone to make it a great day and look forward to seeing you right here for our next video quick tip.