When trying to obtain a USDA rural development loan an underwriter has many guidelines that they look at when qualifying a borrower. On top of having a middle credit score of 640 or higher the underwriter’s want the applicants to have open and active trade lines that have a 12 month or greater payment history. This is required to demonstrate to the lender that you are able to properly manage your budget and pay your bills on time. The minimum requirement is 4 accounts. Below I have listed some trade line options.
- (12) Months rental verification. ( This is a big one as the underwriter will give us credit for *TWO* Tradelines on rent)
- Any open & active account that shows on your credit report (Credit Cards, Car & Other instalment loans, Student Loans, Etc.)
- Alternative Trade lines are accounts that have a reoccurring bill that is not reporting to the credit agencies (Utility bills, car insurance, gym membership, Netflix account Etc.)