Is it possible to get a Rural Housing Loan with a credit score of 607?

Asked by Terri Bolte, Sarver, PA Thu Oct 21, 2010

I am currently trying to buy a house. I heard the rural housing loan is available right now. Can you get that with a credit score of 607? A family member got that loan last year with a credit score of 580.

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Erica Ramus,…, Agent, Pottsville, PA
Fri Oct 22, 2010
The USDA loans are great deals right now. We are using them all the time with our buyers. I did see one with a credit score of 600 recently and that went through. Call a local lender to make sure.
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dave, Agent, Charlotte, NC
Fri Oct 22, 2010
Terri,

If you are talkign about USDA loan i would say definitely yes. There are other guidleines that you must meet of course. but if your debt to income ratio falls into place and your credit report meets the guidlines you shoudl be able to secure a lona. Most banks today are looking for at least a 620 average credit score among the three bureaus. However; there are still a few banks out there that are willign to do it with a score of at least 600. I have not found a bank/mortgage company that will go lower than that this year yet.

Your friend might have been able to secure a loan then. but with the finacial collapse due to mortgages still looming banks have tightened their standards.
Web Reference:  http://www.davedicecco.com
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Alex & Carlos…, Agent, San Diego, CA
Thu Oct 21, 2010
What kind of down payment are you able to make? You could probably get the loan if you found a local lender familiar with rural housing in that area and you had a significant down payment. The reason I bring up the local lender is that it will be easier for them to understand your local market vs a large nationwide lender that may be limited to their nationwide lending guidelines.

Have you talked to the lender that your family member used? That would likely be your first thing to do. Also, talk to the owner of the home you want to but the property from and see if they have a loan on the property. Chances are if they do then that bank may be an option for a loan since they are familiar with rural loans.
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