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Ask The Experts: Question of the Week

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USDA – GUS Approval and Tradeline Requirements

Question:

If a USDA loan is Accept/Eligible but the borrower only has one credit reporting less than 12 months, would alternative credit still be required?

Answer:

If you have a GUD Accept, no further tradelines are required as GUD has determined that the score can be validated. This is an FAQ from their Origination FAQ’s that asks and answers this question, so it is clear.

Q: On a GUS Accept file, the applicant does not meet the minimum trade lines identified for a validated credit score. Are non-traditional trade lines required to be obtained?
A: No, GUS Accept files do not require credit score validation. No further trade lines are required.