In today’s world the idea of being the master of your own house is dream that most of the American population does not even dare to see. However, the USDA loans for home buyers offered by the United State Agriculture Department are dreams come true for people with low income who are looking for homes in rural areas.
Moreover, these loans are available to prospective home buyers with minimum eligibility criteria with only two main USDA loan eligibility conditions; one being the prospective home located in a rural area and the second being the loan applicant being under the income limit set by the USDA. However credit score plays an important role in the USDA loan eligibility criteria and that is why it is important to optimize your credit score before applying for your USDA loan.
Let us take a look at the important tips that will help you optimize your credit rating before you apply for a USDA loan:
• Keep your payment history clean and good. Payment history is a broad term including collections, on time payments, late payments, bankruptcies etc. Having an impeccable payment history is not just important to develop a clean credit score but it also works as a major qualifying factor for your USDA loan.
• You should keep a check on your outstanding amount on credit cards, installment loans and mortgages. If you are behind your loan payments or owe an amount on your credit card than it will surely create problem for you to get your USDA loan.
• The length of the credit history also plays an important role; if your credit history is fairly short (2 years or less) then you have better chance of qualifying for this loan.
Applying for a USDA loan is not that entirely difficult all you need to take care is that you have a fair credit history and meet the few eligibility criteria set by the USDA.