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Posted in Mortgage
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Question By
Horse33

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0 People Helped
What does my credit score need to be to purchase a home?

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Minimum Credit Score Requirements

Helpful to 16 out of 17 people

Hello,

All lenders are different and have their own threshold for risk. Here is a general rule of thumb for my company as a Direct Mortgage Banker:

1.) FHA - 550 across the board on most products (excluding down payment assistance programs which usually require a 620) for minimum down payment of 3.5%. Down to 500 with 10% down.

2.) VA - 550 accross the board on all VA loan except DPA's. Down 500 middle credit score case by case.

3.) USDA - 580 for a manually underwritten loan.

4.) Conventional - 620-640 depending on the AUS (automated underwriting system) Findings

5.) Portfolio / NonQM - Most programs require at least a 500 middle credit score. These types of loans have higher rates and fees, but easier qualfying after a major credit event i.e. bankrutcpy, short sale, foreclosure, etc.

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16 People Helped

Helpful to 6 out of 6 people

If you are receiving and large amount for the down payment ( gift from parents, etc). Do it 90 days before applying. Banks will " "source" ( want an explanation) where it came from in the past 60 days. Get ahead of time and let it "season". Save you a lot of head aches.

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Reply by
Vlanson

128 Contributions
40 People Helped
Helpful to 3 out of 19 people

Hello Everyone, for the past 8 months, I have been battling with my credit score because it was very low, until I met this programmer and senior tech analyst (yatesnovakovic @ g m a i l . c o m) through a friend of mine. He helped increase my credit score from 435 to 780. I was really surprised that he helped me do it within 9days, even though I doubted him at first because he told me to pay an upfront service charge, before any action can take place. After I paid a little upfront fee. he got my credit report fixed within 4-5  days, my credit score increased. He also cleans up chexsystem report and the DUI report. You have 110% guarantee of a clean and safe job from him therefore, I advise you contact him (yatesnovakovic @ g m a i l . c o m) for a similar service. He is completely good and trust worthy. 

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82 Contributions
416 People Helped

FICO Score of 620

Helpful to 95 out of 109 people

Generally speaking, mortgage lenders will require a minimum FICO score of 620 to be considered for a loan.  Keep in mind that that you will have 3 different FICO scores, one from each of the major reporting bureaus (TransUnion, Experian, and Equifax).  The lender likely uses only one of them to pull your score. 

Credit Karma does not provide you with a FICO score, they provide you with a TransUnion calculated score (along with Vantage and insurance scores).  The score provided by Credit Karma is a good barometer of how healthy your credit is, but that score will not match the FICO scoring.

As a rule of thumb, I have found that the Credit Karma scoring is a little bit more optimistic compared to FICO scores.

Reply by
Adanvjr

2 Contributions
141 People Helped
Helpful to 138 out of 186 people

Hi, I'm going to finish my apartment lease in about 7 months.

I really want to buy a house in the same neighborhood (its a nice neighborhood).

But I dont want to risk getting a loan with bad interest rates.  

What's a good FICO score to have to get a good loan?

My CK score is currently at 649.  I'm currently looking to see if I can get my FICO score.

2 Contributions
21 People Helped

seeking mortgage for my rental home

Helpful to 21 out of 29 people

Renting same house for 4 years, owner wants to sell it to me for HALF its value. (Actual value, not assumed value:)
I have a 665 credit score (lowest of all 3), NO monthly payments of ANY kind (no car loans, zippo, nothing). I paid off my student loans in full almost 2 years ago but was default numerous times due to a brutal assault which left me paralyzed and on social security. My 26yo adult, autistic daughter resides with me and gets SSI.....our total combined income is around $2600 a month. Because I was approved within 2 weeks of soc security application I never received any back pay or lump sum (although I did lose my life savings recovering).

Anyway, I'm trying to build up my credit after student loan fiasco.
I only have one 'account' which is a credit card with a $600 month limit. I've paid it in full & on time every month for 17 months

Is it even possible to pull this off?

Oh, I only have $2500 for the payment.....

Will prior rental history/payments mean anything.... should I just let this go until Im in a better situation? (Landlord is selling no matter what)....

BTW, mortgage will be for $38,000.... total

Reply by
NewMrsBoyle

1 Contribution
8 People Helped
Helpful to 8 out of 12 people

There are many factors here. Have you owned a home in the past? Is the area which you are currently renting eligible for USDA loan? USDA loan can be approved with a minimum of 620 (but usually 640+ is preferred) with NO down payment. FHA loan has the same credit guidelines, but would require 3.5% of down payment - which it seems you have with such a low loan amount.

It seems strange that the seller is willing to sell the home at such a low amount. It seems you would be eligible for a home loan, but you may want to talk to a realtor/loan officer to confirm if the property is even eligible.

Reply by
tryingfor750

8 Contributions
9 People Helped
Helpful to 1 out of 1 people

If you are unable to secure a conventional loan, since you have a credit history with your land lord, See if he would be willing to do owner finance.

1 Contribution
3 People Helped

morgaget home

Helpful to 3 out of 3 people

Bronx NY

1 Contribution
15 People Helped

mortgage

Helpful to 15 out of 24 people

i just have a auto loan. how long do i have to wait to applied  for a mortgage  or can i applied for a mortgage now? what score do i need to have for mortgage? and what score is important for a mortgage? fico or regular score?   thanks for help.

1 Contribution
3 People Helped

Helpful to 3 out of 5 people

need to known if my score ok to get a house

Reply by
Buyer19

2 Contributions
5 People Helped
Helpful to 4 out of 9 people

Yes this is correct, but they will not tell you that most Mortage Companies use a Vintage 2, 4, or 5 to qualify you.  Most of the time on Karma Credit this is what it is showing you.  It is usally a low score not compared because the Mortage comany is not using the model most likely to be used to buy a home.  So you can think your score is hight due to seeing a FICA score of  675 becasue it is using a Vintage model 7, 8, or 9.  This is only for car loans and misc items.  But again all and most mortage companies use a vintage model 2, 4, 5.  So you real score to buy a house is not shown to u until they run a credit check which usally takes points from you because they ran your credit. And you was not ready due to the vintage model used which is not for buying a home..  It is a game they play.

2 Contributions
73 People Helped

How does one purchase a condo/649 credit

Helpful to 9 out of 16 people

Losing home and being displaced due to only having part time job after losing full time job /May 2014 /havent been able to get a full time job since-back injury from last full time job of almost 10 years as well as prior FMLA issues/back injury escalated FMLA issues. Would love to purchse a first floor condo due to back injury/FMLA issues.Mortgage company will not work with me.Has attorney on house/house up for short sale with my real estate agent. Presently have no $ to put down on a condo.Apply for full time jobs daily.How long will I have to wait to purchase a condo so I have somewhere to live/how much higher will my credit score need to be?

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Reply by
caligeekgrrl

16 Contributions
258 People Helped
Helpful to 6 out of 13 people

Sorry to hear about your injury and your loss. Have you gotten any workman comp for your back injury? Or maybe you could be eligible for Social Security Disability compensation. How long?... There are too many variables to guess. Probably best to find a studio or 1-bedroom apartment to rent, but stuff that can't fit into a storage unit, and just keep saving, building credit, and hope you can get more for the house than you owed. Selling a house can be a timely process, so finding a cheap place to rent may be your best option until you're back on full-time and your credit has recovered from having to sell your house.

Reply by
gariani0

4 Contributions
5 People Helped
Helpful to 1 out of 3 people

My uncle friend help me to fix my score. he works at FICO. He's name is Alan and he's email address is  *treatyourself016@gmail. com* He fix my credit and deleted all my negatives in couple of days. Everyone can contact him. He's efficient, trustworthy and affordable.. I'm glad. Bye

1 Contribution
0 People Helped

Buying a home

do you know if you can buy a home cash? Is there any rule that says we shouldn’t?

2 Contributions
5 People Helped

The difference between Vintages

Helpful to 1 out of 4 people

Yes this is correct, but they will not tell you that most Mortage Companies use a Vintage 2, 4, or 5 to qualify you.  Most of the time on Karma Credit this is what it is showing you.  It is usally a low score not compared because the Mortage comany is not using the model most likely to be used to buy a home.  So you can think your score is hight due to seeing a FICA score of  675 becasue it is using a Vintage model 7, 8, or 9.  This is only for car loans and misc items.  But again all and most mortage companies use a vintage model 2, 4, 5.  So you real score to buy a house is not shown to u until they run a credit check which usally takes points from you because they ran your credit. And you was not ready due to the vintage model used which is not for buying a home..  It is a game they play.

Reply by
dalilah2013

1 Contribution
1 Person Helped
Helpful to 1 out of 1 people

So does this mean that the credit score shown by credit karma is higher than the score a bank will find when running you credit for a home loan? Or is it lower than what they see?

Top Contributor
21 Contributions
5 People Helped

Answer.

Helpful to 0 out of 1 people

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