Forgotten Your Password?

Need to Register?

Question Icon

Credit score required for a usda or a 3% home loan in missouri

Hi can some lenders tell me what credit score is required for a usda 100% home loan is or the 3% fanie may home loan would require? by tracy._523_815 from Reeds Spring, Missouri. Feb 12th 2013 Reply


Steven Ceceri (123LoanYes)
#12 ranked lender in Rhode Island - 723 contributions

Good Morning Tracy & Capps too! Don't waste your time on a Google or Other Search engine trying to find USDA Properties. Each property must be verified on the USDA Eligibility Site. I am providing that link here: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11. You should work with a Mortgage Professional to guide you through the process as some properties may not be eligible which is the case with FHA as well (regular FHA 203b) due to the property conditions. Some items include missing stair/hand railings, peeling paint, etc. If the seller is willing to fix these items as part of your negotiation and agreement, then you could pursue either program (assuming the property is USDA Eligible). As far as the Fannie Mae 3% Down Program, you will need to have a strong credit score because Mortgage Insurance is required. Credit scores vary by loan program and if you work with a Trusted Mortgage Professional, they can guide you through the process and help improve your credit if needed, to get you access to as many options as possible. If you need direct help, I'd be happy to work with you!

Feb 12th 2013
2
0
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,795 contributions

Realistically, if your middle credit score is below 640, you should stop trying to buy a house, and work on repairing your credit. While there is potential for some people on some products to get approved below 640, that really is the industries benchmark score, and should be the target score for anyone looking to buy a home.

Feb 12th 2013
1
0

I'm not a mortgage expert but I contacted USDA in the area I plan to buy by looking up USDA with the state through Google.They usually set up a huge site per state which tells you all the requirements including income.You can also contacted them through the site and have them call you for a one on one consultation if you want.

Feb 12th 2013
0
0
Steve Azarch (sazarch)
#18 ranked lender in Tennessee - 93 contributions

A lot of lenders require at least a 640 score for USDA RD loan but some lenders will go lower.

Feb 12th 2013
0
0
Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions

As others have said, most lenders require a 640 score for a USDA loan regardless of the state you are in. Your next best option is probably a FHA loan which will require 3.5% as a downpayment and some lenders will approve loans with scores lower than 640. I can go as low as 620 but the approval requirements are more strict so I normally work with the borrower on trying to get the score over 640. Check out my blog on this site "First Steps" then contact me or another lender after you have made sure you are ready to try to purchase a home.

Feb 12th 2013
0
0
Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

You will probably need a 640 score or higher for either program

Feb 12th 2013
0
0
Eric Burns (ericburns)
#15 ranked lender in Missouri - 7 contributions

TracyI have a USDA program providing the property is eliigible That if you have no credit and no credit score (NO Credit Good Or Bad) But you have been paying 3 bills such as phone, electric, rent, insurance ect... for 12 months then I can go with the USDA no score program.If you have a low score down to 600 because you do not have any recent credit but still have 3 bill that you have been paying for 12 months then I could still work with you.Feel free to call me at 417-987-1409 or e-mail me at eburns@usa-mortgage.com if you would like to see if I could move forward at this time on your new home purchase.I have years of experience in USDA Mortgages along with years of experience in credit counseling.Tracy Have a Great Day

Feb 12th 2013
0
0
Subscribe to our news feed.