Here are some of the basic requirements for credit.
- For $0 down must have 620 or better credit score or no credit score with no credit history.
- Below 620 credit score is a 3.5% down payment with an FHA 203B Loan Program
- Must be out of Chapter 7 bankruptcy for three years.
- Must be three years out from a foreclosure, deed in lieu, short sale.
- Old collections are okay.
- Should have at least four open credit accounts or can have alternative credit such as utility bills, cell phone, insurance or rent.
- Medical collections are okay.
- No credit accounts in dispute.
- No open judgements or liens.
- Two years work history or education/schooling. If you were out of work or school for an extended period of time this acceptable under extenuating circumstances. For instance; pregnancy, illness.
Besides credit the other factor the USDA looks at is income and the size of the family household. There is an income cap in each county that cannot be exceeded to get a USDA home loan. The more people that occupy the home the higher the income limit they will allow. Below is a link that you can click on to see the income limits per state and county.
USDA Income Eligibility Search