USDA Loans and your Credit Score

the USDA loan is a very great product if you’re looking to purchase a home outside the city limits. The great part about a USDA loan is it’s 100% financing and the PMI is minimal compared to an FHA loan. this loan has some strict guidelines and requirements related and regarding to credit. The minimum requirements for your credit score on a USDA loan or purchase is going to be a 660 credit score. if you don’t have a 660 credit score and you’re looking to do a USDA loan some other options may be available for you. the CaHAFAl which is an FHA product allows you to do 100% financing with only a 640 credit score. Some people that don’t have a 640 credit score or above and are looking for a hundred percent financing to purchase a home have options as well. Example utilizing a credit repair agency in your home ownership goal could be a wonderful starting point for you. There are certain credit repair agencies that will offer their services for very little cost and once you are done with the program have knowledge to get you together with a qualified approved mortgage lender for a government program. The USDA loan also has a really restrict requirement related to your debt-to-income ratio. I would highly advise you to get together with your mortgage loan officer and go over what the guidelines are in their specific areas as well as the income limits. Income limits range from county to county in USDA. If you make more than income limit requirements you will be disqualified from getting pre-qualified for a USDA loan. There has been a spike in USDA loans over the last 4 years based on an increase in development in agricultural areas.

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