USDA Home Loans In North Carolina

USDA Home loans are perfect for people who want a home in a more rural area.  In Wake County most of Fuquay Varina, Garner, Holly Springs and Apex all fall within the acceptable areas.  Underwriting requirements, and the Credit Score requirements for these loans is a little different than other programs… especially when it comes to Bankruptcy and Foreclosures.

In general, these are the items that the underwriters for USDA loans are looking for:

• No minimum credit scores, although scores under 580 are generally not accepted.
• 1 payment in the last 12 months could have been no more than 30 days late – Exceptions may be granted if you have 620 or greater middle credit scores
• Chapter 7 and 13 must be discharged for 3 years – Foreclosures must be completed 3 years ago – Exceptions may be granted if your borrowers have 620 or greater middle credit scores.  This is significantly more strict than FHA or VA loans.
• Collections – Accounts cannot have been placed in collection status within the last 12-months – Exceptions may be granted if your borrowers have 620 or greater middle credit scores. Collections May not need to be paid off. This is especially true for Medical Collections.
• Judgements – Must should be paid off for at least 12 months Because Judgements can attach to the property you purchase and become a first lien, this can be kind of a big deal… we’ve seen some situations where judgements for 6 years ago did NOT have to be paid off.
• If the applicant’s middle credit score is under 620 a written verification of rent is required for the most recent 12 months. However, previous Housing History is Not required.
• Non-Traditional Credit is Acceptable if no credit is available

Unlike Conventional, FHA and VA mortgages – we do have the ability to use “common sense” underwriting with USDA.  We also get the opportunity to use offsetting factors.  So, for instance, if your ratios are tight – we can use the fact that you’ve been on your job for a long time, or that you have a college degree.

If you are considering a USDA home loan in North Carolina, contact STEVE AND ELEANOR THORNE 919-649-5058. We are the USDA Rural Development Loan Experts in NC… AND… we have the best rates!