How Many Times Does USDA Pull Your Credit?

USDA home loans are a government-backed program for purchasing homes in designated rural areas. The loan application process involves credit checks, which can impact credit scores. Understanding how credit inquiries function is important for prospective borrowers. This article clarifies when credit is pulled during a USDA loan application and the reasons for these assessments.

Initial Credit Assessment for USDA Loans

The initial credit assessment for a USDA loan is performed by the mortgage lender, not directly by the United States Department of Agriculture. This first credit pull occurs early in the application process, such as when a borrower applies for pre-qualification or submits their full loan application. The lender evaluates the applicant’s creditworthiness, including payment history, existing debt, and financial stability.

This initial inquiry is a “hard inquiry” on a credit report. Its purpose is to determine if the applicant meets the credit requirements for the USDA loan program and the lender’s underwriting guidelines. For a single loan application submitted to one lender, there is generally one hard inquiry for this initial assessment.

Subsequent Credit Reviews During the Loan Process

While a single initial credit pull is common, additional credit reviews may occur. One scenario is if the loan closing process extends over 90 days. Lenders may perform a “credit refresh” to ensure the applicant’s financial situation has not significantly changed since the initial report. This check helps ensure continued eligibility.

Additional inquiries may also occur if there are material changes to an applicant’s financial profile during the loan process. For instance, acquiring new debts, experiencing a job change, or making large purchases could prompt a lender to review the credit report again. Lenders ensure the borrower’s ability to repay the loan remains consistent. These subsequent checks depend on the specific timeline and any alterations in the applicant’s financial standing.

Factors Influencing Credit Inquiry Frequency

The total number of credit inquiries an applicant experiences can be influenced by several factors. Applying for a USDA loan with multiple lenders is a factor. Each distinct lender performs its own credit pull, resulting in a separate hard inquiry. While multiple mortgage inquiries within a short timeframe (generally 14 to 45 days) are often grouped for credit scoring, they still appear as individual entries on the credit report.

An applicant’s financial behavior throughout the loan process also plays a role. Opening new credit lines, like a credit card or auto loan, or making large purchases can signal a change in financial risk. Such actions may prompt the lender to conduct another credit review to assess the updated debt-to-income ratio and overall financial health. Lender policies or specific USDA loan types might also necessitate additional checks.

References

1. Experian. “How Many Points Does a Hard Inquiry Drop Your Credit Score?”. Accessed August 28, 2025.