Visions Five Group

Indications of Unacceptable Credit
as established by USDA

for

Section 502
and
other federal and state loans
available through
Visions Five Group





No credit history. (Note: A lack of credit history reflected on a credit report may be mitigated if the applicant can document a willingness to pay debts through submission of a third party verification, copies of canceled checks or other acceptable documentation for monthly obligations such as rent, utility, phone or doctor bills or other recurring debt payments.)

Incidents of more than 2 debt payments more than 30 days late within the last 12 months.

A foreclosure that has been completed within the last 36 months.

An outstanding Internal Revenue Service (IRS) tax lien or any other outstanding tax liens with no satisfactory arrangement for payment.

. Two or more rent payments paid 30 or more days late within the last 2 years. If the applicant has experienced no other credit problems in the past 2 years, only 1 year of rent history will be evaluated. This requirement may be waived if the program loan will reduce shelter costs significantly and contribute to an improved repayment ability.

. Outstanding collection accounts with a record of irregular payments with no satisfactory arrangements for repayments, or collection accounts that were paid in full within the last 6 months, unless the applicant had been making regular payments previously.

Non-agency debts written off within the last 36 months unless the debt was paid in full at least 12 months ago.

Agency debts that were debt settled within the past 36 months, or are being considered for debt settlement.

Delinquency on a federal debt.

A court-created or court-affirmed obligation or judgment caused by nonpayment that is currently outstanding or has been outstanding within the last 12 months except:

A bankruptcy in which

Debts were discharged more than 36 months prior to the date of application, or

When an applicant successfully completed a bankruptcy debt restructuring plan and has demonstrated a willingenss to meet obligations when due for the 12 months prior to the date of application.

A judgment satisfied more than 12 months before the date of application.

An applicant with an outstanding judgment obtained by the United States in a Federal court, other than the United States Tax Court, is not eligible for a Section 502 loan. This requirement is statutory and cannot be waived.

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