The USDA Loan Require?3 Comments
The USDA Loan and Credit Scores..
USDA-Loan-Credit-Score-MachinePeople ask me all the time what credit score is needed to get a USDA loan to buy a house in Arizona with absolutely Zero Down Payment. There are actually a pretty good variety of answers to this question.
Before we open the curtain on the USDA Loan and show you the credit score options, let’s take a look at what a credit score is.
There are three credit bureaus and each has a detailed history of an individual’s credit. They are Trans Union, Equifax and Experian. They each have their own super secret, mathematical model that they use to create and formulate a person’s credit score. It’s basically like your credit history goes into the big credit machine, and out comes a three digit number.
That number is a score that lenders will use to determine your level of risk. So a lower score means a higher risk and a higher score means a lower risk.
So, you’ll have a score from Trans Union, from Experian and from Equifax. The score used to qualify for a loan is the middle of the three scores. So let’s say you have a 648 from Trans Union, a 602 from Experian and a 623 from Equifax then you middle score would be the 623.
Now, the USDA Loan does not have an actual minimum credit score, can you believe that? But the lenders who fund the USDA loans will generally require a minimum middle credit score of 620 and the USDA does advise that lenders should not approve loans with less than a 580 middle credit score. Some lenders will go with a lower score, say down to 58
How To Get A USDA Loan For A Home With A Swimming Pool1 Comment
Even When They ALL Say You Can’t..Yes You Can!
USDA-Loan-Swimming-PoolI get this question quite a bit, probably because I’m in Arizona right? And a pool is a great way to keep cool in our fairly hot summers.
But a lot of lenders will just say NO when it comes to using a USDA loan to buy a home with a swimming pool. They probably shy away because a property with an in ground swimming pool not only has to get the local Rural Development office to approve the Guarantee in order to get a USDA Loan, but they also have to get what’s known as a POOL WAIVER from the NATIONAL Rural Development office.
Sounds like a lot of extra work, doesn’t it?
The reality is that it isn’t that bad.
Here’s how to get a USDA Loan on a home that has an in ground swimming pool.
The USDA Loan has some additional calculations that help determine the value of a home with a swimming pool. They do this because the USDA is not in the business of financing luxury items, and an in ground pool could be considered just that.