A number of conditions disqualify a home from receiving USDA funding, including: Missing plumbing, carpet or tile, or furnace or heating unit A roof in disrepair Safety and health hazards Sometimes a house doesn't qualify for a USDA loan when less serious conditions are present, such as dirty or old carpeting and walls, older or less efficient windows and doors, or an out-of-date design. As you look for a USDA renovation loan option, you may not qualify for a USDA loan for certain financial reasons. This can include debt, an employment change, appraisal issues, and high interest rates. The minimum credit score to qualify for a USDA rehab loan is 640.