Monday, February 20, 2012

USDA Direct Loan Credit Guidelines

We just finished a short video on the basic credit guidelines required for a USDA Rural Housing Direct Mortgage.  As you view this please keep in mind that this is a loan that is focused at low to very low income households. 

There is no down payment required and it is funded directly by the Government, unlike the VA loan which is only guaranteed by the Government.  This would be a good alternative for our veterans,

It takes somewhere between 4 to 6 months to get through the qualification process and loan closing.  The biggest delay is usually funding that is allocated based on the budget and the governments fiscal year.  The year ends Sept 30th at which time new funds must be allocated.  Sometimes that can take a month or two.

These are just the basic credit guidelines.  If your credit score is over 640 the underwriter can waive many of these guidelines.  There is more to qualifying than just your credit.  You can visit our website at to review more guideline.

If you have questions you can reach us from our USDA Direct Loan website.  We'll help you find the answer to your questions on their site, ...  which is not user friendly.

Good Luck.