Kentucky Rural Housing and USDA Credit Score Requirements
Credit Requirements
Credit
Score
The minimum credit score for all borrowers may not be lower than
620
regardless of GUS approval.
The lowest qualifying score of all applicants is used to qualify and each borrower must have at least two credit
scores. The qualifying score is the lower of 2 or the middle of 3 scores and must be reviewed for each
borrower.
Borrowers without a credit score are not eligible.
Credit Report Requirements
A tri-merged credit report to be ordered. is required on all loans. The credit
history must indicate a reasonable ability and willingness to meet credit obligations.
Credit History
The borrower’s credit history must indicate a reasonable ability and willingness to meet obligations as they
become due. The following must be reviewed carefully:
Valid Credit Score
For a credit score to be considered valid, the score must be generated from a minimum of (3) trade lines that
have each been evaluated for at least 12 months. At least one of the three trade lines requires recent activity in
the last 12 months. Non-traditional credit is not eligible for qualifying.
Mortgage/Rental Payment History
A mortgage/rental payment history of 0×30 for the past 12 months is required. Any delinquencies in the last 24
months are subject to Plaza underwriter approval and may require additional documentation.
Bankruptcies
Bankruptcies discharged less than 36 months are not eligible regardless of GUS findings.
Foreclosure
Foreclosures that occurred in the last 36 months are not eligible regardless of GUS findings
Adverse Credit
Delinquent federal debt or adverse credit on a previous Rural Housing loan must be reviewed and approved by
the local RD office and may be required to be paid in full or result in loan declination.
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