Credit Profile:
- Minimum risk score of 640 for each borrower for full documentaion.
- Minimum risk score of 640 for each borrower for streamline transactions.
- The borrower must have two credit scores to be eligible. However, GUS may accept borrowers with only one score.
- Any loan that does not receive an Accept recommendation from GUS must be accompanied by a credit waiver from USDA. Supporting documentation may be required by USDA unless the loan receives an Accept recommendation from GUS Manually underwritten loans and GUS loans that receive a “Refer” underwriting recommendation approved for borrower(s) with eligible FICO scores of 640 and above do not require submission of supporting documentation to Rural Development.
- If the underwriter deems the adverse credit acceptable then the underwriter should document their decision on the Uniform Underwriting Transmittal Summary (Fannie Mae Form 1008/Freddie Mac Form 1077) in the "Underwriter Comments" section. Adverse credit examples include outstanding collections, recent late pays in the last 12 months, etc.
- If the underwriter approves an adverse credit waiver, the lender must secure documentation evidencing that the circumstances surrounding the adverse information were temporary in nature, and were beyond the applicant's control, and have been removed so its reoccurrence is unlikely.
- Applicants with an Accept recommendation from GUS or a credit score of 640 and above without any major derogatory credit in the previous 36 months does not require rental history documentation. Otherwise, satisfactory rental history for the most recent 12 months is required.
