USDA Direct and Credit Scores

[Anonymous]

Hi all! We were pre qualified with the USDA last week and submitted the full application yesterday. I got a call from the area specialist today who stated that my credit report is only showing 1 score from each bureau and there are supposed to be 3 to consider it accurate?? MyFICO shows me multiple scores so I'm not sure what going on.... He said it would be about a week before he could tell me what else I need to continue and get approved. Does anyone have any experience to share when dealing with the USDA? Or this specific problem and how it turned out?!

[Anonymous]

By any chance is he talking about lines of credit? I know they told me I needed 2 or 3 open lines of credit in good standing before you can be approved?

[Anonymous]

I don't think so. I have more than 3 trade lines. He said each bureau has 3 different scores that the usually report. I've never heard that.

[Anonymous]

I wish I could be of more help but that's the only thing I could think of, I hope everything works out for you though! Good Luck!

[Anonymous]

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@Anonymous wrote:
He said each bureau has 3 different scores that the usually report. I've never heard that.

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Is this guy new to the Lending world? While technically correct, that each CRA has 3 different scores. Them being for Auto, Mortgage, and general Credit such as CC. It shouldn't matter when you're only dealing with Mortgage scores, each CRA only has one top report. 

So I think there is a misunderstanding somewhere.

From their site: https://www.usdaloans.com/articles/income-and-credit/

How Credit Scores Work

Many prospective homebuyers are caught by surprise when they apply for a mortgage and see scores that differ from what a free credit monitoring service shows.

First, it's important to note that consumers don't have just one credit score. Each of the nation's three major credit reporting agencies (CRAs) – Experian, Equifax and TransUnion – receive different information from creditors and score that information dozens of different ways depending on the type of credit you're seeking, such as a mortgage, car loan or credit card.

The majority of lenders utilize FICO scores to check a potential borrower's credit.

There are five main factors that go into every FICO score:

[Anonymous]

I'm not sure. He was pretty short with me when I tried to explain that I was seeing multiple scores so it didn't make much sense to me. I also let him know that I hadn't gotten any notifications saying that they had pulled my reports. This is what I got back:
Your credit report is a personal credit report not a Residential Mortgage Credit Report. We need to use our Residential Mortgage Credit Report that we have contracted with Equifax. Thanks.
Sean

I was under the impression that the RMCR was the tri-merge. 1 score from each credit bureau. He said there should be 3 scores from each.

I'm so confused by this 🙄

[Anonymous]

Has to be new. Yes, they use Equifax to pull credit, but their handbook shows which fico scores they use and it’s the same standard mortgage versions (5, 4 and 2). So unless 2 of your reports and frozen, he doesn’t know what he’s talking about.