Credit Score Requirements for USDA Loans

usda home loans ncUSDA loans are perfect for people who want a home in a more rural area.  In Wake County most of Fuquay Varina, Garner, Holly Springs and Apex all fall within the acceptable areas. To find out if the property you are interested in will be in a USDA area you can watch this video.

In general, these are the items that the underwriters for USDA loans are looking for:

  • No minimum credit scores, although scores under 620 are generally not accepted.
  • 1 payment in the last 12 months could have been no more than 30 days late – Exceptions may be granted if you have 620 or greater middle credit scores
  • Chapter 7 and 13 must be discharged for 3 years – Foreclosures must be completed 3 years ago – Exceptions may be granted if your borrowers have 620 or greater middle credit scores.  This is significantly more strict than FHA or VA loans.
  • Collections – Accounts cannot have been placedin collection status within the last 12-months– Exceptions may be granted if your borrowers have 620 or greater middle credit scores. Collections May not need to be paid off. This is especially true for Medical Collections.
  • Judgements – Must should be paid off for at least 12 months Because Judgements can attach to the property you purchase and become a first lien, this can be kind of a big deal… we’ve seen some situations where judgements for 6 years ago did NOT have to be paid off.
  • If the applicant’s middle credit score is under 620 a written verification of rent is required for the most recent 12 months. However, previous Housing History is Not required.
  • Non-Traditional Credit is Acceptable if no credit is available

Unlike Conventional, FHA and VA mortgages – we do have the ability to use “common sense” underwriting with USDA.  We also get the opportunity to use offsetting factors.  So, for instance, if your ratios are tight – we can use the fact that you’ve been on your job for a long time, or that you have a college degree.

If you are considering a USDA mortgage loan, contact STEVE AND ELEANOR THORNE , Mortgage Banker in Cary 919-649-5058.


  1. Your blog is interesting!

    Keep up the good work!

  2. You got a nice post on Credit Score Requirements for USDA Loans. Really very nice to read and useful, thanks for the nice share.

  3. You got a nice post on Credit Score Requirements for USDA Loans. Really very nice to read and useful, thanks for the nice share.

  4. Thank you, I just wanted to give a greeting and tell you I like your website very much.

  5. I never thought i will find this much information on Credit Score Requirements for USDA Loans today. Nice post mate – keep up the good work.

  6. There is obviously a lot more to figure out about this issue, but you made some really good points. I will definitely be checking here more often. Thank you.

  7. Although your article about bad credit home equity sounds interesting but i’m not sure if i could agree with you in 100%.

  8. yea nice Work 😀

  9. My credit score last year got lower because i have some unpaid bills on my credit card company and i also lost my job.;;;

  10. in this times of economic recession, sometimes it is difficult to have a great credit score-*.

  11. (But one does…miss…being able to get them.)

    • We still have USDA Home Loan available in NC – if you’ve been told there are no funds – you were miss lead. The “PMI” changes on 10/1 – but we are still closing these loans.



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