Asked by Tiffany  |  Submitted June 27, 2015

How can I get pre-approved for a home loan for a house if my credit score is 645?

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  Answers  |  3

June 30, 2015

Hi Tiffany. The short answer to your question is "probably". Your best bet would be an FHA mortgage, assuming you meet FHA's guidelines for credit, income, and assets. While Fannie Mae and Freddie Mac will take loans with scores as low as 620, the pricing is based on credit scores, and lower scores mean substantially higher costs, unless you have a huge down payment, which I am assuming you don't.

The minimum score requirement for FHA loans varies somewhat from lender to lender, depending on their risk tolerance. Some require 640 scores or higher, some are 620, and my bank (and others) only require 600 scores. Bear in mind that this doesn't mean you're approved just because your scores are above 600, it merely means your score doesn't disqualify you from getting approved.

It's also important to note that credit bureaus use different scoring models for different credit inquiries. A consumer pulling her own score won't necessarily get the same scores a mortgage lender would, and a mortgage lender's scores might vary from a car dealers' as well.

An actual pre-approval requires a lender verifying your credit scores, your income and assets, and running your loan through the underwriting engine, which tells the lender if the loan is approvable, and what items the underwriter would be required to confirm for final loan approval.

Hope that helps, let me know if you have any other questions.


$commenter.renderDisplayableName() | 09.29.20 @ 01:32


July 09, 2015

If my credit score is 564 what kind of loan is available to save my home

$commenter.renderDisplayableName() | 09.29.20 @ 01:32


July 14, 2015

Hi Tiffany,

FHA's minimum credit score is much lower than this. Some lenders have 'overlays' (ie, additional requirements to minimize their risk) above the FHA minimum requirements. My company has no overlays.

Even with this score, you might still be able to obtain a conventional loan (non-FHA) and avoid the egregiously high FHA mortgage insurance.

There are various factors that determine what loan program would work best for you, primary drivers are credit, income, debt and assets/down payment. Definitely talk with a lender to understand how high the bar is. Even if it doesn't work well today, a good lender will help you draw the path forward and set goals to get you there.

Please let me know if you have more questions.


Ted | 01.29.16 @ 04:38

FHA dropped their mortgage insurance premiums January 2015, and for virtually all credit challenged borrowers, FHA's costs are now lower than conventional loans.

$commenter.renderDisplayableName() | 09.29.20 @ 01:32