Clean Credit Requirements and USDA Home Loans in NC

clothes-line“Clean Credit” is a slang term used OFTEN in mortgage lending.

It refers most often to someone who has 12 months with no late payments.  But it’s not just late payments, it also refers to 12 months with no new collections filed against you.  12 months with no judgements of liens filed on your credit report.

12 months with no one writing anything to your credit report except GOOD STUFF. If you had some late payments on a couple of credit cards in the middle of 2006… and then you hit another rough patch in 2008, and then AGAIN in 2010 and 2011… we refer to that as “sloppy” credit.

You could still have a credit score of 600 – but it shows a history of not paying on time.  For THIS type of borrower – the underwriter might need to see 18 to 24 months of CLEAN CREDIT!  This is particularly true if you are applying for a USDA home loans.  Other mortgage programs have different credit score guidelines.

If you are new to the credit game – or if you want to see if your credit score is “big” enough to buy a house – call Steve and Eleanor Thorne, 919-649-5058.  We are NC’s USDA Home Loan Experts, and we have the lowest mortgage rates!  Remember, just disputing everything on your credit report is probably not going to work.


  1. I think they should make it harder for young people to obtain credit. So many teenagers are running up large debts. Every time they enter an apartment store they are enticed to take out another store card to run up borrowings. When the come to apply for a home loan they don’t have a hope of obtaining a competitive Mortgage Rate.

    • I agree – and I’ve talked to our Senators about “for profit” colleges that are charging an ENORMOUS fee for education. THOSE folks, who are trying to do the RIGHT THING and are getting underwater with Student Loan debt concern me.

  2. Hello,
    I need help with usda loan. Please call me contact me by email ….tks!

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