USDA Guaranteed Mortgage

USDA loans offer 100% financing, meaning there is no down payment requirement.  A minimum 640 middle credit score is (normally) required.  The seller may also be allowed to pay up to 6% of the sales price toward the closing costs if that is negotiated into the sale contract.  USDA loans are stricter regarding credit than FHA loans – they have lower debt-to-income requirements.  You should not have had any 30 day late payments within the last twelve months.  You also must be in an eligible area.  There are also income restrictions.  You can not own any other real estate to use the USDA form.

If you have ever had a bankruptcy you can qualify for a USDA loan with re-established credit and 36 months have passed from the bk discharge date.