USDA Relaxes Guidelines for No Money Down Buyers!

Posted by Dietchi Thomas on Monday, August 29th, 2016 at 3:35pm.

Minimum Credit Requirements for USDA Loans Now Includes:

  • Minimum number of trade lines to validate an applicant’s score is only two instead of 3
  • Eligible trade lines include revolving (credit cards, lines of credit), installment loans (car loans, furniture loans, and other types of term loans), & mortgagesUSDA eligibility map
  • Qualifying trade lines must be open at least 12 months
  • Nontraditional or alternative credit is allowed to supplement the credit report to meet the requirement **
  • At least one applicant whose income and assets are used for qualifying must have a valid credit score

** Alternative credit includes items such as car insurance, life insurance, utilities, cell phone, gym membership, small store accounts not reporting on credit, school tuition, and even a pattern of savings deposits.

Many thought it was amazing that we closed loans with only 1 credit reference on credit and two alternative credit references, but now we can do even better for buyers!!  Check out these USDA limited credit success stories!

 

 

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