The USDA home loan is available to borrowers who meet income and credit eligibility requirements. Qualification is easier than for many other loan types, since the loan doesn’t require a down payment or a high credit score.
Similarly, can I get a USDA loan with collections on my credit?
USDA Loan Requirements
Although it is possible to qualify for a USDA loan with collections on your credit report, USDA guidelines state that you must make payment arrangements with the collection agency before it will guarantee your loan.
Beside above, does USDA pull your credit?
Even if you don’t have a 640 credit score, it’s still possible to apply and be approved for a USDA loan. USDA allows lenders to underwrite and approve USDA home loans manually at the lender’s discretion. Once cleared by your lender, the USDA must review your loan for final loan approval before you can close.
How do I contact USDA?
For USDA-related questions, visit the USDA website or contact the Department’s Information Hotline: (202) 720-2791. For questions regarding the tools on our website, contact: [email protected] .
USDA Loan Eligibility
- U.S. citizenship or legal permanent resident (i.e. U.S. non-citizen national or qualified alien)
- Ability to prove creditworthiness, typically with a credit score of at least 640.
- Stable and dependable income.
- A willingness to repay the mortgage – generally 12 months of no late payments or collections.
With a touch-tone telephone, call 1-800-414-1226, and select option #2 from the Main Menu, and select option #2 from the Payoff Information Menu. Our Interactive Voice Response (IVR) system can provide a verbal estimated payoff amount based on the information you enter.
The information needed to receive a Final Payoff Statement will vary slightly, depending on the action that you are taking to pay off your loan. Once all the required information is received by CSC, it normally takes 3-5 business days to obtain a Final Payoff Statement.
USDA Service Centers are offices where you can typically meet face-to-face with USDA, Farm Service Agency (FSA) and Natural Resources Conservation Service (NRCS) staff to discuss your vision, goals, and ways USDA can help.
USDA eligibility for a 1-4 member household requires annual household income to not exceed $91,900 in most areas of the country, and annual household income for a 5-8 member household to not exceed $121,300 for most areas.
The USDA doesn’t have a fixed credit score requirement, but most lenders offering USDA-guaranteed mortgages require a score of at least 640, and 640 is the minimum credit score you’ll need to qualify for automatic approval through the USDA’s automated loan underwriting system.
Things like unverifiable income, undisclosed debt, or even just having too much household income for your area can cause a loan to be denied. Talk with a USDA loan specialist to get a clear sense of your income and debt situation and what might be possible.