What Are The Credit Scores Required To Buy A Home
FHA Loan Credit Requirements
There are official and unofficial guidelines for determining how credit scores will affect an applicant’s eligibility. Some mortgage companies may tell you that you need a 620 or even a 640. Those lenders are typically referring to conventional loans. Your lender will use your FICO credit scores to determine whether or not you are eligible for a home loan. If you’re concerned you may not qualify, we highly recommend reaching out to our partners so that they can get you mortgage-ready fairly quickly. They are the industry leaders in repairing your credit so you can qualify for a mortgage loan. Below we’ve outlined some of the most important credit requirements your lender will look at.
Looking for a home loan with bad credit? Take a look at our Bad Credit Home Loans article here, or find specific information for many states (for example Washington and Florida) and for many cities (like Chicago and Los Angeles).
Credit Scores To Buy A Home
The FHA requires a 10% down payment on loans made to persons with a credit score of 580 or lower. There are such things though as bad credit home loans. It all depends on your individual circumstance.
An FHA home loan mortgage is only available for primary residence occupancy. Real Estate investors cannot utilize an FHA loan on investment properties.
Compared to other loans, the FHA has more lenient credit guidelines and criteria.
The down payment required for an FHA loan is 3.5%.
Down payment assistance may be available for qualified first time home buyers.
Your lender will verify your employment history so it’s best to have steady employment history.
The down payment for an FHA loan can be a gift from a relative
See all the official credit requirements on the FHA website. (See official FHA website)
Conventional Loan Credit Requirements
The credit score generally required for Fannie Mae and Freddie Mac is 620 or better.
Currently there is a 3% down payment program available although there are strict criteria and guidelines.
Conventional loan lenders will also require a steady employment history.
To determine just how much house you can afford, try using our home affordability calculator.