Things needed to get pre-approved for a Kentucky USDA Rural Housing Loan.

Things needed to get pre-approved for a Kentucky USDA Rural Housing Loan.

1 What kind of credit score.  USDA does not have minimum credit scores but most lenders will create overlays so as they don't get shut off from the USDA dept from issuing mortgage loans. USDA uses an online system, called GUS, to evaluate  the credit portion of the loan approval. Credit scores, bankruptcies or foreclosures, collections, trades lines are all reviewed for credit worthiness. 
USDA use to have a minimum tradeline requirement of 2 trades for 12 months but this was changed at the first of 2020. 
Credit scores under 640 will automatically receive a refer, meaning it will be more difficult to get approved for the mortgage loan. I have seen credit scores below that get pre-approved, but it is very difficult to get approved below that. 
3 year removed from Chapter 7 Bankruptcy and foreclosure. 
2. Gather your documents---  
USDA will want the following documents for pre-approval 
Last two years tax returns for all household members to determine total household income
Last two years w-2's, 1099's and other incomes that are fixed like ssi, retirement, etc
Last two months bank statements and retirement accounts last quarterly statement. 
Last 30 days of paystubs
If pay or receive child support, a record of last 12 months and copy of divorce papers

3. What does USDA loans offer Home Buyers in Kentucky?

American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346

Text/call 502-905-3708

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 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916