Kentucky USDA and Rural Housing Credit Scores Guidelines

Kentucky USDA and Rural Housing Credit Scores Guidelines

 A 24-month history of residence is required on all files. Additionally, a 12-month verification of rent or mortgage with a payment rating is also required on all files when the primary wage earner has a credit score of less than 640. This may be done using a Request for Verification of Rent or Mortgage Account, or information contained on the credit report, or cancelled checks. All lates greater than 30 days must be documented with an explanation from the applicant.
NOTE: Applicants with credit scores of 640 or greater are not required to explain recent credit inquiries or to document adverse credit history except for those involving delinquent Federal debt or a previous Agency loan. Additionally, existing collection accounts may remain outstanding and rental verifications are not required for applicants with credit scores of 640 or greater.

Loan applications will be underwritten based on one of the following.
  • Credit report must match GUS findings.
  • Must not be older than 120 days on the date of closing for existing properties and new construction.
  • Must contain complete information provided by all three repositories.
  • The credit report must show the following three required FICO scoring models for the report to be valid with Platinum Mortgage, Inc.:
    1. Equifax Beacon 5.0
    2. Transunion FICO Risk Score, Classic 04
    3. Experian/Fair Isaac Risk Model V2.
  • Must reflect a minimum of 2 scores per borrower.
At least one applicant whose income or assets are used for qualification must have at least 2 historical trade line payment references that have existed for at least 12 months to establish a credit reputation and validate the credit score.

If more than one score is supplied by the same repository, the lesser of the scores will be used.
  • Determining Qualifying Credit Score:
    • Middle of 3
    • Lower of 2
    • If only one score is provided, the loan is ineligible with Platinum Mortgage
Minimum credit score for:
  • Manual Underwrite = 680
  • GUS Approval = 640

Most are familiar with USDA Rural Housing Loan Program  being a great no money down program available and it is not just for Kentucky first time buyers
But starting with commitments on October 1, the funding fee that is financed is going from 2.75% to only 1%!  On a $100,000 loan, a buyer saves about $1750!  In addition, the annual fee (like PMI) reduces from .5% to .35% which lowers the monthly payment by $15 a month on an $100,000 loan amount.
Joel Lobb
Senior Loan Officer
text or call my phone: (502) 905-3708
email me at
The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, ( USDA Mortgage loans only offered in Kentucky.

All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.

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