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!

 

 

Posted by Dietchi Thomas on
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