Credit Score Requirements
Do You Qualify for a Mortgage Loan?
One thing to be aware of when purchasing a home are the credit score requirements. Certain loans demand a higher score than others and some loans will even make you pay more down payment as punishment for having a low credit score. This is why staying on top of you bills and not having too much debt is very important before you try to buy a home. Here are the credit score guidelines when purchasing a home.
If you are trying to get an FHA loan you need a credit score of at least 580 at which your down payment will be 3.5%. If you credit score is below 580 then you will need to put at least 10% down. This means if you were to buy a 200k house you will need to have $7000 for a down payment if your score is over 580 or $20,000 if it is less.
In most cases you will need a credit score of at least 620 to get a conventional mortgage loan. Although, some underwriters have been know to accept 580 but nothing below that. Depending on your score you down payment could be anywhere from 5% to 20%.
Typically a when getting a VA loan you must have a score of at least 620 to qualify. Without that it will be very difficult to find a lender willing to work with you.
USDA loans are a government backed loan similar to a VA but while there is no in stone credit score requirement most lenders are looking for a credit score of at least 660. Below this and you may have a hard time getting a mortgage.
As you can see your credit is very important when getting a mortgage. If you have made some mistakes in the past that are hurting your score don’t worry. We are partnered with the top credit repair firm in the country to help get you mortgage ready.