What The USDA Rural Loans Underwriter Looks For When You Apply… Part 1
This is a three part series where we will look at the 3 factors that a USDA Rural Development underwriter will look at when reviewing your file for loan approval. If you have questions that are not addressed here specific to USDA Rural Development Credit Qualifying, please ask them in the comment box below.
The USDA Rural Loan is not as familiar to people as other mortgage types. Additionally it’s natural to be concerned about what an underwriter will be looking for when they delve into the depths of your personal Loan application. After all, you’re supplying them with personal information in your quest to buy a home. So I’d like to provide some quick insight as to the 3 things that a USDA Rural Loan Underwriter is looking for when they review your loan application for that Loan approval.
1. Your Credit
Yes, your credit is an obvious number 1 and it is the most important aspect of your loan decision. It is one factor that you can actually have control over. In an earlier post I wrote about USDA Credit Qualifying, but will go into more detail here.
Credit tends to come in three categories:
- Good (Currently defined as a 620 middle credit score or better)
- Bad (Less than a 620 middle credit score)
- Thin (A lack of credit history often with no credit score)
While most USDA Rural Loan lenders require a 620 middle score, some have been elevating that requirement to 640 or even 660 over recent months. Credit Score Optimizing is beyond the scope of this post, but good advice may be all you need to boost your score enough to qualify. If you have concerns about your score you should review your credit report with an experienced mortgage professional as some good quality advice may be all you need to get a few extra points.
Collections and bankruptcies are the predominate issues that the can cause concern. The age and size of a collection will determine if it would need to be paid off or not. AND different USDA Rural Loan lenders will have their own specific requirements determining if a collection must be paid or not before closing.
The same can be said about prior bankruptcies. Most USDA Rural Loan lenders will require… Read The Rest of the Story at USDA Rural Development Home Loans.
Apply online for a USDA Loan or call (520) 225-0380 and get pre-qualified today.