It really depends on the type of mortgage for which you are going to be approved.
You have all probably heard of conventional loans. With that type of loan, you need a little bit of a higher score. The minimum would be a 620 credit score.
With a FHA loan, if you put three and a half percent down, you will only need a 580 credit score. If you have ten percent to put down, with a FHA loan, your credit score does not have to be any higher than 500! That is kind of crazy, right? So, if you have ten percent down and your credit has kind of taken a hit, at a 500 credit score you can still buy a house.
As far as a VA loan, you are going to need a 580 credit score.
A Jumbo loan is when you buy multiple properties at the same time, for that type of loan you would need a higher credit score of 700.
These are just the minimums. Your actual credit score, your debt to income ratio, and all of your other financial records are going to come into play when you are talking about buying a house. So, it is not just about your credit score.
Full disclosure, I am not a mortgage representative, I am a realtor licensed in Pennsylvania and New Jersey.
The best thing to do to know if you qualify is talk to a lender. I realize sometimes it can be frustrating to make a phone call to a lender because after you do, sometimes they are up your rear end. (I have lenders up my rear end as a realtor because they want me to refer them to my clients).
Sometimes, they end up calling you every two days to push you into buying house just for the simple fact that you wanted to know if you qualified. However, it is still best to talk to multiple lenders about your options because we now know it is not all about your credit score.
In conclusion, credit score requirements can really vary and it depends on what kind of money you are putting down on a house. Put down more money if you are concerned about low credit scores. If you default on your loan and you put down ten or twenty percent, well the bank could more than likely can recoup their losses and they would be more inclined to approve the loan.
My name is Dawn D’Amico. I am a licensed realtor in New Jersey and Pennsylvania. If you are buying, selling, or investing and you need my help please reach out to me.
📞 Dawn's Mobile: 215-962-9307, eXp Realty: 888-397-7352
📧 Email: dawn.damico@exprealty.com
🔗 More Info: https://bit.ly/3X9Ju4x
