USDA Home Loan Credit Qualifications in NC

Good News!  You do NOT need perfect credit to qualify for a USDA Home Loan!  Whew!  This 100% no money down program requires a MINIMUM credit score of 600 – but folks, just because you have a 600 score, doesn’t mean you can purchase. These days – we normally need a score above 640 to get the loan approved by Underwriters… unless you qualify for NC Housing Finance Agency funds.  They will allow you to have 2 scores above the 600 mark to qualify.

If you are NEW to the Credit game, meaning you are recently out of school and don’t have any BAD credit, you just don’t have a TON of credit – we can probably get a NC Housing 600 score approved. In general, you need 3 different trade lines with 12 months of payment history.  Equifax will verify your rental payments (assuming the lease was in your name) and calculate that as a trade line, the other 2 credit repositories will not.

Here are some guidelines on what USDA Home Loan Underwriters will NOT take:

  • Foreclosure within the last 36 months.
  • Bankruptcy within the last 36 months
  • More than one 30 day late in the past 12 months
  • Outstanding Judgments in the past 12 months
  • Two or More missed rent payments within the last 24 months
  • Chapter 13 Bankruptcy – Case by Case review
  • Delinquent tax liens
  • Delinquent student loans

If you are in the market for a new home, and you want to know if your credit will qualify you for a the no money down home loans with USDA Rural Development Mortgage Loan, call Steve and Eleanor Thorne – 919-694-5058 we are NC’s USDA Home Loan Experts!  We recently did a comparison of all no money down home loans available in NC, and we still think that for folks who are willing to live in less urban areas, USDA Home Loans are the best option!


  1. Darlene Snowden says:


    I am interested in a USDA loan for a home in Georgia.

Speak Your Mind