Qualifying for a USDA Rural Development loan with a judgment is challenging. Typically, lenders require any outstanding judgments to be paid or settled before loan approval. Some lenders may consider a payment plan for the judgment, but this varies. It’s best to address the judgment directly, either by paying it off, negotiating a settlement, or setting up a payment plan, and then working with a lender to see if you can proceed with the loan application. You can set up a written payment agreement with the judgment creditors. Make three timely payments. Show the canceled checks. After a three month seasoning, you are able to become eligible for a USDA loan. You cannot make three monthly payments ahead of time to become eligible for a USDA loan.