Start Your USDA Loan Now




Credit Score Requirements For USDA Loans

Mortgage lenders and banks look at your credit history to determine if you are able to be approved for a USDA mortgage. Fortunately, USDA loans make qualifying easy for  low- and middle-income families.

In this section we will break down USDA credit score requirements.

USDA Minimum Credit Score Requirements

The USDA does not set a minimum credit score requirement, but most mortgage lenders will require a score of at least 600. With a 600 credit score you can be approved by a process called manual underwriting. If you have a credit score of 640 or higher, you can qualify for automatic approval using the USDA’s Guaranteed Underwriting System. (GUS). GUS is the USDA’s automated underwriting system, which automates the process of approving a USDA home loan application.

If you have a credit score below 640 and require manual underwriting, don’t worry, the process is easier than it sounds. Even people without a credit score at all can sometimes qualify, though there are additional requirements you must meet to receive a loan approval.

Credit guidelines will vary from lender to lender but we can help guide you to the right USDA home loan investor


Credit Score Chart

FICO Credit Score CategoriesCredit Score Range
Excellent750 and higher
Good700 – 749
Fair650 – 699
Poor550 – 649
Bad549 and lower


How Does USDA Look At Credit Scores

The USDA uses a tool called a Guaranteed Underwriting System, or GUS, to help automate the process of approving a USDA loan application..

Although USDA does not set a minimum credit score, GUS requires a credit score of at least 640 to automatically qualify for a USDA loan. If you have a lower credit score, you can still qualify for a USDA loan using manual underwriting. Manual underwriting typically involves more stringent guidelines.

Manual underwriting means that although you were not automatically qualified for a loan, you might still qualify with the help of compensating factors.

A  compensating factors is a positive point that can strengthen your loan application, such as savings, low debt and other factors.

You can learn more about the USDA’s underwriting guidelines here.


The USDA Manual Underwriting Guide

If you do not have a credit history established, you might still qualify for a USDA loan. You will need to provide evidence of a “non-traditional tradeline,” This is another way to prove that you pay your bills on time.

Banks will sometimes require proof that you are paying any of the following bills on time:

  • Utility Bills
  • Rent/Leases
  • Medical Bill Payment Agreements
  • Childcare
  • Insurance Payment Plans
  • Car lease/Loans
  • Personal loans
  • School tuition Payments
  • Mobile Phone Bills

The policies on non-traditional tradelines can vary from lender to lender.

Another great way to show your creditworthiness is to show that you have accumulated savings. If you are capable of saving money, you will have funds left over every month to help pay the new mortgage. Having reserves in your savings account – Example – three months of housing payments – can help convince mortgage underwriters you should be approved. 

Not having a credit score means you will be doing manual underwriting, and so your loan officer will be able to help you figure out exactly what you need to qualify.


Start Your USDA Loan Now




Privacy policy | Preventing Identity Theft | Credit Counseling Disclosure | United States Patriot Act Disclosure

Bank of England Mortgage has tried to provide accurate and timely information; however, the content of this site may not be accurate, complete or current and may include technical inaccuracies or typographical errors. From time to time changes may be made to the content of this site without notice. Bank of England Mortgage may change the products, services, and any other information described on this site at any time. The information published on this site is provided as a convenience to visitors and is for informational purposes only. You should verify all information before relying on it and decisions based on information contained in our site are your sole responsibility. If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at (888) 807-2353. This contact information is for accommodation requests only. Bank of England Mortgage is a division of Bank of England. NMLS 418481. Bank of England Mortgage is not affiliated with any government agency. Member FDIC.
We are not the U.S. Department of Agriculture. If you wish to contact them you can do so by visiting there site at


091720150912491_color_black (1)