September 01, 2019 at 12:26pm | Rima Rafeh

What Should My Credit Score Be to Qualify for a Mortgage?

With today’s interest rates being so low, Frannie Mae said that more than half (58%) of Americans that surveyed agree that now is the best time to purchase a new home. This parallels the findings of The National Association of Realtors found in their survey. A whopping 63% of people believe that the sooner you purchase a home the better. 
But unfortunately, what plagues the home buyer’s mind is the myths and rumors that go around which in turn discourage a potential homeowner from buying a home.

This is one of the most asked questions any real estate professional hears. A recent announcement from CNBC stated that the national mean (average) of the FICO®  score is at an all-time high of 706. That is pretty high, but the good news is that you may not even need it to be that high if you are looking to qualify for a mortgage. Let’s dive deeper to debunk some myths.  

Here is what the leader in consumer and business credit reporting, Experian has to say about  FICO® scores and their relevancy. 

FHA Loan:  “FHA loans are ideal for those who have less-than-perfect credit and may not be able to qualify for a conventional mortgage loan. The size of your required down payment for an FHA loan depends on the state of your credit score: If your  credit score is between 500 and 579, you must put 10% down. If your credit score is 580 or above, you can put as little as 3.5% down (but you can put down more if you want to).”

USDA Loan “While the USDA doesn’t have a set credit score requirementmost lenders offering USDA-guaranteed mortgages require a score of at least 640.”

Conventional Loan: “It’s possible to get approved for a conforming conventional loan with a credit score as low as 620, although some lenders may look for a score of 660 or better.”

If you would like to chat sometime about your home buying journey please contact me.


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