Recent Changes to USDA Guidelines

Recently the USDA Guaranteed Home Loan Program has gone through a substantial change with many of the guidelines that an individual and/or property would have to meet in order to qualify.  The following is a description of the most important changes that you should be aware of as a consumer to help with the process and getting pre-approved to move forward with a home purchase.


Guideline Changes:

  • There is no longer a limit on the amount of acreage a property can have.  Keep in mind that income producing assets on the property / farm properties would still disqualify the property.
  • The USDA no longer requires that the value of a pool on the property be deducted from the overall value.
  • Three overall trade lines that have a 12 month history are now required for an individual to qualify.  You must currently be generating a credit score at the time of applying, but trade lines from the past can now count as part of this requirement.
  • Rent that is paid in cash can now be counted as a credit line and be verified.
  • If you have a current installment loan that has less than 10 months remaining, we can now exclude that from your overall debts.
  • It is now required to verify income for all members in the household that are currently earning.
  • Two months of bank statements will now be required for all USDA loans.


Overall these changes are beneficial to the consumer.  It allows for more people and properties to qualify and help this program to prosper.  If you would like to see if you can qualify and get some advice on exactly what is need to obtain a loan, please give Consumer Real Estate a call and one of our experts would be more than happy to assist you with the process!

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