Many folks are interested in the USDA Home Loan NC program - it is not just for First Time Home Buyers, however, the program does not require ANY down Payment! So it's very affordable. After understanding how the program works, the next question most folks have is what are the minimum credit score requirements for a USDA Loan in NC? In looking at the USDA Home Loan Underwriting Guidelines, we don't think these requriements will change much in 2014.
When we are talking about a minimum credit score for a home loan, we are really saying that of the three credit scores you have – two of the three must be at or over the minimum credit score requirement for that mortgage program.
Minimum Credit Score Requirements for USDA Home Loans NC:
USDA Home Loans have no down payment requirements. The monthly USDA PMI rate is only .4%, and does not go up if you have lower credit scores. There are two credit score thresholds for a USDA Home Loan NC approval.
The Automated Underwriting system (GUS) is good at approving borrowers who have a credit score of 640 or higher.
For buyers with credit scores in the 620 - 639 range, GUS will not issue an approval, and those loans require Manual Underwriting. READ: Minimum Credit Score Requirements for a USDA Loan in NC can be as low as 620, it just takes additional paperwork.
That basically means that an Underwriter must have strong compensating factors, such as a lower debt ratio, in order to “justify” approving your loan outside of the GUS system. All USDA Home Loans (no matter what the credit score) must go to the USDA Office for approval.
This typically means this loan is a longer approval process. The waiting period to get a USDA Home Loan after a Bankruptcy or Foreclosure is 36 months from the date of the transfer, not the date of discharge. This is something that trips many loan officers up on, so if you are trying to get the BEST answer to the question of when you can buy after such a tragedy - call us.
USDA Home Loans NC are currently available in every North Carolina County - and they do have maximum Income limits, which vary by the size of the family, and the county you live in.
If you have questions about minimum credit score requirements for a mortgage, or want to know ways that you can RAISE your credit scores, you might want to read the section on this page about: If you have a credit score of 600, or higher here are the steps we suggest you take NOW.
Need specific information about your situation and Minimum Credit Score Requirements for a USDA Loan in NC, call Steve and Eleanor Thorne 919 649 5058. We work with people in NC every month who thought they would never be able to buy a house, and found that it was much easier than they thought!
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