But What If I Have No Credit History or Credit Score?
If you have no credit history we will need to establish a credit history for you by providing at least 3 and hopefully 4 alternative credit sources (I do this on a daily basis for my clients and would be happy to walk you through this process). These are items such as your rental history, cell phone, utility, cable, daycare, storage etc. We ask the creditor to provide your payment history and we have them added to your credit profile (Again, I do this for you…). There are many people who have never used their credit and have no scores or documented history. Under the USDA Home Loan Program this is acceptable and does not eliminate you from qualifying for a home loan.
The following items are considered unacceptable UNLESS we can provide evidence that the cause of the problem was beyond your control, were acute in nature and have been removed and/or remedied. In most cases, I can either help you get these items removed from reporting on your credit report, or help you document that it was an isolated incident “outside of your control”:
• Bankruptcies must be discharges 36 months from date of application.
• Judgments must be paid 12 months prior to date of application.
• Foreclosures must be 36 months from date of application.
• Two or more rent payments paid 30 days late with the past 3 years.
• Accounts that have been sent to collection within the past 12 months.
• Collections that are outstanding with no arrangement for payment.
• Charge-offs that have occurred in the past 36 months.
Please note that this information is explanatory in nature and every file is subject to underwriter’s discretion. That is why it is important that you are working with a Pro, and surrounding yourself with a Team of USDA-Rural Development Experts. Contact Dan Keller for a FREE Credit Analysis and USDA Mortgage Consultation at firstname.lastname@example.org or (425) 350-7136