topic Re: Is USDA Changing their minimum credit score requirement in Mortgage Loans

Is USDA Changing their minimum credit score requirement

K_J — Fri, 04 Jan 2013 18:02:18 GMT

I just got a call from my builder that USDA increased their minimum credit score from 620 to 680 effective yesterday (1/3/13), has anyone heard about this rumor or news?

Re: Is USDA Changing their minimum credit score requirement

maluba — Fri, 04 Jan 2013 22:48:44 GMT

I called a local office in CA (since mine in AL was closed) and the lady I spoke to said she hadn't heard anything like that. I'll call my local office on Monday to be sure.

Re: Is USDA Changing their minimum credit score requirement

Anonymous — Fri, 04 Jan 2013 23:07:53 GMT

@K_J wrote:
I just got a call from my builder that USDA increased their minimum credit score from 620 to 680 effective yesterday (1/3/13), has anyone heard about this rumor or news?

Wow that would be a huge increase that would affect many many people.

What would happen to people who have already started the loan process but haven't closed yet?

Re: Is USDA Changing their minimum credit score requirement

Anonymous — Fri, 04 Jan 2013 23:32:07 GMT

i dont think the credit score requirement changed. I emailed a loan officer in ohio and he said they did change the amount of time after a BK from 2 yrs to 3 yrs before you can get financed. I dont know if thats true or not but its what i was told.

Re: Is USDA Changing their minimum credit score requirement

Anonymous — Sat, 05 Jan 2013 03:45:27 GMT

The rate change is lender specific.

Lenders can change their requirements for qualification. Has nothing to do with USDA requirements.

USDA requirements are minimum requirements for obtaining USDA funding. Then the lender has their requirements and lenders investors may have another set of requirements.

Re: Is USDA Changing their minimum credit score requirement

K_J — Sat, 05 Jan 2013 06:50:38 GMT

I called my LO today, he told me that USDA sent out a new matrix out yesterday specifying that the new guidelines would be 680 minimum, however they retracted that information saying it was an error. He told me going from 620 to 680 is big jump and do not see them doing that. He did say that USDA would be rolling out new guideline for credit scores soon and to stay tuned.

Re: Is USDA Changing their minimum credit score requirement

Anonymous — Sat, 05 Jan 2013 23:19:16 GMT

Sounds a little fishy to myself.

If it was generated by USDA then we all would have received the same error. To my surprise (not) no other bank and or broker in my area has either.

Re: Is USDA Changing their minimum credit score requirement

Anonymous — Sun, 06 Jan 2013 19:11:41 GMT

I sure hope that's not true. My middle score is only 665. I've googled and googled and can't find anything to support that statement, I even checked USDA's web site. For those of us going through the process who don't have scores that high, this would be devastating news. Maybe your lender changed their min requirements. I've read of that happening. If that is the case, I hope it won't prevent you from achieving your dream of homeownership.

Re: Is USDA Changing their minimum credit score requirement

K_J — Tue, 08 Jan 2013 17:30:14 GMT

I actually heard this from my builder and I followed up with my LO. The builder and the LO are not affiliated so I see no reason for both to make this up. The latest news is that USDA would be making changes to their eligibility areas and the changes would take effect march 27th.

Re: Is USDA Changing their minimum credit score requirement

Anonymous — Tue, 08 Jan 2013 19:35:24 GMT

Hmmm...I wonder if they are dealing with a lot of foreclosures/delinquencies and to ensure they remain in business, they have to hike the requirements. I am just wild guessing here.

Re: Is USDA Changing their minimum credit score requirement

Anonymous — Tue, 08 Jan 2013 21:05:06 GMT

I am kinda new here but will offer what I do know.. I got approved on a 640 (fico) for USDA loan a few days ago. He made no mention of this. He did however tell me with a 620(fico) and no collections they would approve you, or 640 and some collections will approve you. I am currently waiting till March to buy as I want to raise my credit some more, and also wait till my lease is up here. -Hope this helps.

Re: Is USDA Changing their minimum credit score requirement

maluba — Thu, 10 Jan 2013 09:03:29 GMT

^^^^ Yep, that's what our local broker told me too. She also said she gets memos from the USDA every day and they haven't mentioned anything.

Re: Is USDA Changing their minimum credit score requirement

Anonymous — Thu, 10 Jan 2013 13:55:20 GMT

It is not USDA making score changes (not as of yet anyway).

Any score changes your LO or Broker told you is Lender specific. Lenders have the right to overlay their requirements.

Seems the lender your Broker is using change their requirements or if you are dealing with a LO from a specific lender, that specific lender changed their minimum requirements.

Re: Is USDA Changing their minimum credit score requirement

Anonymous — Tue, 15 Jan 2013 14:29:44 GMT

I have an unofficial copy of the latest USDA announcement. They are adjusting the minimum FICO score to 680. However, if the borrower's have lower FICO scores and significant compensating factors, the lender can request an exception.

Re: Is USDA Changing their minimum credit score requirement

Anonymous — Tue, 15 Jan 2013 18:29:47 GMT

if this is true i would think this will affect alot of people who are dealing with usda. Im looking at purchasing in july and im sitting at 645 middle score right now.

Re: Is USDA Changing their minimum credit score requirement

Anonymous — Tue, 15 Jan 2013 23:41:39 GMT

i hope someone else has some info on this to. Im getting kinda worried if ill be able to get to a 680 by july. I really hope its gonna stay at 640

Re: Is USDA Changing their minimum credit score requirement

K_J — Wed, 16 Jan 2013 16:49:10 GMT

JM,

I don't think its lender specific, I am in the Washington DC area and after doing some research the change to minimum fico score is true though its not official yet.

Re: Is USDA Changing their minimum credit score requirement

awdsmama — Fri, 18 Jan 2013 16:35:21 GMT

Wondering if anyone has heard an update on this at all?

Re: Is USDA Changing their minimum credit score requirement

Anonymous — Fri, 18 Jan 2013 18:39:32 GMT

The key words is unofficial!

Until it becomes official for USDA min requirements no sense jumping the gun.

As of now nothing has changed. Lenders I presently use for USDA have not changed their overlay requirements.

Re: Is USDA Changing their minimum credit score requirement

awdsmama — Fri, 18 Jan 2013 19:45:36 GMT

@Anonymous wrote:
The key words is unofficial!

True. I just know many of us have worked to get to 640, this will sting if now it wasn't quite good enough ;-) But hey, nothing wrong with keeping on to hit 680!