Can my client obtain GLS financing with a FICO score less than 610?
The underwriting lender determines creditworthiness of the customers(s). RD does not have a minimum credit score. Lenders may set a policy for a minimum FICO. The RD guidelines show that it would be extremely difficult to qualify with a FICO of 580 or less. Again, the lenders underwriter will make the determination based on adequate compensating factors. A recent bankruptcy or foreclosure should not be an automatic denial of the loan. The underwriter must determine if the circumstances were beyond the customers control, have been removed, and likely will not reoccur. In addition, non-traditional credit may be used for a customer without the customary credit (FICO). See the Administrative Notices on credit, non-traditional credit, and underwriting posted at www.rurdev.usda.gov/regs Click on the Administrative Notice link.
