USDA Loans

Q:  What kind of credit do I need to have to qualify for a USDA loan? Can I qualify for a USDA loan with bad credit?

A:  Credit history must indicate a reasonable ability and willingness to meet obligations as they become due. The following are indications of unacceptable credit history and must be carefully investigated. If loan approved through GUS, the guidelines below are not required to be met.

• More than one payment being more than 30 days late in the last 12 mos.
• A foreclosure or bankruptcy in the past 36 months.
• A judgment in the last 12 months.
• Outstanding tax liens, mo matter what their age, that are currently delinquent.
• Two or more rent payment paid 30 days or more past due.
• Outstanding collection accounts, mo matter what their age, that are currently delinquent.
• Previous RHS debt or non-RHS debt that resulted in a loss.
• Any outstanding judgment obtained by the United States in a federal court (other than a tax lien).