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what is the credit score needed for a usda mortgage?

i'd like a usda loan since i don't havea lot to put down but i was told you have to have credit pretty high. my credit is 700 so i am not sure if that is good enough? by dfarrow78643242 from Dillonvale, Ohio. Jul 24th 2014 Reply


Credit can be as low as a 600 FICO. Apply online and get pre-approved free:www.imortgagelending.com

Jul 24th 2014
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,930 contributions

You do not need to have excellent credit, but you can not have bad credit. Your score is higher than most USDA loans I do. Lean more at www.MortgagesUnlimited.com/usda

Jul 24th 2014
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John Burke (jburke)
#30 ranked lender in Texas - 208 contributions

Hi Dfarrow78643242,The USDA guidelines are setup in such a way that it makes more sense for lenders to require a 640 or better score. Here's what I mean. Per the USDA guidelines, an underwriter does not need to document or request a credit waiver as long as the file is approved through USDA's Automated Underwriting System, GUS. What's interesting is GUS simply is not approving loans when the score is under a 640 so instead of dealing with more paper work and doing a manual underwrite(because they take longer) most lenders require a 640 better score. Obviously your score is well over that threshold so you'll be fine. Please feel free to contact me for more information or help. John Burke | Senior Mortgage | Great Plains National Bank | http://www.usdamortgageonline.com| (877)228-9069 | Lending in ALL 50 states. |

Jul 25th 2014
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T.C. Strait (TCstrait)
#71 ranked lender in Ohio - 18 contributions

The folks that have responded are all correct. Most of the USDA loans I've originated have scores in the 620-660 range. So your 700 score is fine for USDA. One thing to watch out for is Debt to Income ratio, as USDA's automated underwriting system (GUS) caps them at 46%. Give me a call if I can be of any assistance. T.C. Strait | Lynx Financial Group | 513-777-8383

Jul 25th 2014
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

As others have suggested, 620 to 640 is what most lenders require, so if your at 700, you should be fine, but understand that it takes more than a credit score to qualify for a mortgage.. additionally, USDA has income restrictions and the home your looking at must be in a USDA defined area.. if you have 3.5% down, you can use FHA and purchase a home anywhere.. with conventional you will need 5% down, and if you have VA benefits available to you, you can do 100% financing.. to know exactly what is available to you, you should contact a LOCAL mortgage broker and apply with them. By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jul 25th 2014
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Steven Ceceri (CreativeFinancingOptionsGroup)
#36 ranked lender in Massachusetts - 723 contributions

Good Morning! I'm providing a link for you to look over for some various programs offered in Ohio that you may be interested in and also providing you with a link to the USDA Guidelines that will detail what scores you need and other eligibility requirements they have. Good Luck! http://www.ohiohome.org/homebuyer/first_time.aspx / http://www.rurdev.usda.gov/supportdocuments/ca-sfh-grhunderwritingguide.pdf

Jul 26th 2014
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