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Module 05 · Foundational · 20 min

USDA Loan Requirements

USDA's Guaranteed Rural Housing loan offers 100% financing in eligible areas. This module covers the GUS automated underwriting score floor, income limits, and property eligibility.

Learning Objectives
  • Determine if a property is in an eligible USDA area
  • State the GUS minimum score threshold
  • Explain income limits by household size and county
  • List USDA waiting periods after derogatory events

Property and Income Eligibility

USDA Rural Development eligibility is geographic and income-based. The property must be in a USDA-designated rural area (much of suburban America still qualifies). Household income cannot exceed 115% of the area median income for the county and household size.

Credit Score Threshold

USDA uses GUS (Guaranteed Underwriting System). A 640+ FICO unlocks streamlined GUS approval. Below 640 requires manual underwrite with stronger compensating factors.

Waiting Periods

  • Chapter 7 — 3 years from discharge
  • Chapter 13 — 1 year of on-time plan payments
  • Foreclosure — 3 years
  • Short sale — 3 years
Key Takeaways
  • 100% financing in eligible rural/suburban areas.
  • 640+ unlocks streamlined GUS approval.
  • Income capped at 115% of area median.
End-of-Module Exam

Module 5 Exam — 5 questions

Pick the best answer for each question. Pass with 80% or higher to mark this module complete.

  1. 1.

    USDA streamlined approval through GUS requires a FICO of at least:

  2. 2.

    USDA income eligibility is capped at:

  3. 3.

    USDA loans require what down payment?

  4. 4.

    USDA waiting period after Chapter 7 discharge is:

  5. 5.

    Property eligibility for USDA is determined by:

0 of 5 answered