Minimum Credit Scores Needed for a Mortgage
Your credit score is 1 of 3 keys credit items a lender examines when you apply for a loan. The other 2 items are equally as important.
These are the amount of monthly credit payments you are making, and your credit history.
Example: you can have a 680 credit score, but not be eligible for a mortgage because you had a foreclosure 2 years ago. Or, you can have too much debt. Or you do not have the income to qualify for a home. This is why one often sees homebuyers with a poor credit score of 580 get approved for a mortgage but another with excellent credit not get approved.
Your credit score for mortgage can only be determined by an official mortgage credit report which is pulled by a loan officer. Consumer related credit reports such as Credit Karma and Free Annual Credit Report are not accurate and can be off by as much as 100 points either way and have much missing information.
Here is a list of popular loan programs and the minimum credit score needed:
•Conventional - 1% down –First Time Homebuyers - 700 •Conventional - First Time Home Buyers – 3% down - 620 •Conventional – Others - 5% Down - 620 •FHA - $0 down - for limited qualified buyers - 640 •FHA - 3.5% down - 580 •FHA - 10% down - 500 •Jumbos - 20% Down – 680 •Jumbos - 30% Down - 600 Credit Score - 20% - 30% down •Non-Prime - Bank Statement only Programs •Non-Prime - recent bankruptcy or foreclosures – 500 •VA - $0 Down - 550 •USDA - 580 Credit Score - $0 Down