When looking into purchasing a new home, usually the first thing that comes to your mind is your credit. All loans are based on that MYSTERIOUS CREDIT SCORE but a Rural Development Loan might be a bit more forgiving about “your dog eating your credit card statement” two years ago than you may think.
Rural Development Loans by the Numbers
Credit scores or FICO scores range from 300 to 850. A FICO score of 850 would be perfect credit but how many of us actually have that? With Rural Development, you don’t have to be perfect, just human. In most cases, for a Rural Development Loan, lenders only require a credit score of 600 or above to qualify (Below 620 more restrictions apply).
Rural Development Loans and Tradelines-
Tradelines are lines of credit that appear on your credit report. These tradelines are what helps generates your credit score. With a Rural Development Loan, you generally need to have 3 tradelines. But if you have less than three, Rural Development usually will allow us to substitute other accounts that do not normally appear on your credit report. These other accounts might be your monthly phone bill, car insurance, rent, or other bills that you pay monthly.