Can I get approved for a USDA direct loan with a 600 credit score?

Asked by Mathew G, Effingham, IL Thu Jan 10, 2013

Monday my fiancee and I put in an application for a usda loan for a 70k house. We met the eligibility guidelines for income. Everything seems good but I'm worried about my 600credit score, and my fiancee's 650. I make more than she does and have had my job for 2 years compared to her 10 months. The agent said we have a chance of it working out since I have paid off all debts except our 2 open accounts that have never had a late or missed payment and solid record with our current land lord of a year. Has anyone had experience with low score approval on a usda loan? He said that since our rent was 500, and the mortgage payment would only be 440, we were looking at a good affordable price range for us. Lastly how fast/slow is usda on saying yay or nay? We applied Monday Tuesday we had credit checks ran and Wednesday they were doing employment verifications. Is this good news it just ordinary? Thanks in advance. Mat

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Web reference:


, ,
Tue Jun 14, 2016
A 24-month history of residence is required on all files. Additionally, a 12-month verification of rent or mortgage with a payment rating is also required on all files when the primary wage earner has a credit score of less than 620. This may be done using a Request for Verification of Rent or Mortgage Account, or information contained on the credit report, or cancelled checks. All lates greater than 30 days must be documented with an explanation from the applicant.
NOTE: Applicants with credit scores of 640 or greater are not required to explain recent credit inquiries or to document adverse credit history except for those involving delinquent Federal debt or a previous Agency loan. Additionally, existing collection accounts may remain outstanding and rental verifications are not required for applicants with credit scores of 640 or greater.


Joel Lobb
Senior Loan Officer

phone: (502) 905-3708
Fax: (502) 327-9119
1 vote
Riccardo War…, Agent, Bolingbrook, IL
Fri Jan 11, 2013
The lenders we work with are generally requiring a 640 score for USDA loans. You may find some lenders doing it for lower than that but may be a bit tricky.
0 votes
Gary Loy, Agent, Pana, IL
Fri Jan 11, 2013
USDA Direct are generally 30 year fixed rate loans. In some cases, depending on individual situations, rates may be higher than current bank rates based on credit score. The home you buy must meet USDA requirements. Once approved and home is purchased your mortgage will be sold off to secondary market. In some cases, individual situations apply, If you qualify for 50K the loan might allow a 2% above to include closing cost, inspections ect. Once approved the USDA rep you spoke with will cover all of that.
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0 votes
Mathew G, Home Buyer, Effingham, IL
Fri Jan 11, 2013
I'm not going through a bank at this point though. This is usda direct. Their model score is 640 but its not a minimum per se. Just wondering about this type of home loan in general.
0 votes
Kristin Blan…, Agent, Land O Lakes, FL
Fri Jan 11, 2013
Thank you for such a great question! Usually the minimum for USDA is 620. Some local banks and lenders can do a mortgage on a lower score, but need a larger down payment. I recommend contacting some local lenders in your area and asking them if they can help you. Also, you may consider hiring a credit service to help get your score higher.
0 votes
Gary Loy, Agent, Pana, IL
Thu Jan 10, 2013
It sounds like good news. Credit scores generally have to be 640, and yours would probably be combined. Every bank and Mortgage company is different and has different guidelines as to their lending requirements. If there wasn't a good chance odds are you would have known in 24 hours. So much goes into the factors the bank looks at stay positive and if you get a no from one contact another. Hope this helps ...
0 votes
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