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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 22 out of 23 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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Helpful to 7 out of 7 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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FICO Score of 620

Helpful to 97 out of 111 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

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142 People Helped
Helpful to 139 out of 189 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

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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

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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

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