Which of the following statements is true regarding traditional credit requirements for USDA loans?

The statement regarding lower FICO scores being accepted under traditional credit requirements for USDA loans is accurate because USDA loans often have more flexible credit guidelines compared to conventional loans. This means that borrowers with lower credit scores can still qualify for a USDA loan, typically with scores beginning as low as 580, depending on the lender's criteria and the lending environment.

This flexibility is crucial, as it allows access to home financing for a broader range of individuals, particularly in rural areas where access to traditional credit may be limited. Additionally, the USDA loan program aims to support low- to moderate-income families in acquiring homes, which can make it more accommodating for borrowers who might struggle to meet the higher credit requirements of conventional mortgage products.

The other statements do not accurately reflect the USDA loan program's guidelines. Some borrowers may rely on alternative credit histories and still qualify for loans, and not all applicants are required to have a traditional credit profile to gain approval. This unique aspect makes USDA loans appealing for many potential homeowners.