Credit Score Requirements for Kentucky Mortgage USDA Zero Down Home Loans

Refinances can have 0 x 30 mortgage lates in the last six months. Previously 0 x 30 in last 12 month 

Language has been added for minimum of three tradelines (non-traditional credit may be used)

At least one applicant whose income and assets are used for qualification purposes must have 3 trade lines for 12 months (the trade lines can be open/closed/disputed/authorized use). GUS “Accept” recommendations that cannot meet these guidelines must be downgraded to “Refer”. In the case a loan has been downgraded , non-traditional credit is allowed

USDA guidelines for Bankruptcy of 36 months.  Shorter periods may be allowed if documented extenuating circumstances.

Credit reports cannot be more than 120 days old when the loan is closed. This rule now applies to new construction as well.
• If the collection balance is equal to $2,000 or greater, the underwriter must; require payment in full or verify…