Asked by Brian  |  Submitted February 19, 2014

What credit score do I need to be considered for a home loan?

I want to buy my first home before the rates get too high, but I don't know if my credit is good enough.

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  Answers  |  11

February 19, 2014

The lowest score required is 500 for an FHA loan.

$commenter.renderDisplayableName() | 04.25.17 @ 20:33

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February 25, 2014

Hello Brian:

There are a multitude of loan programs that require credit scores that are across the spectrum.

The most efficient way to approach purchasing a home is to first connect with a reputable mortgage lender / loan officer and begin the preapproval process. During this process, the loan officer will pull your credit report and present to you, the best options for a mortgage loan not just based on your credit alone, but also on your overall financial profile.

I hope this helps and good luck.
C

Christina | 08.19.15 @ 13:34

Helpful information, thanks..

$commenter.renderDisplayableName() | 04.25.17 @ 20:33

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November 05, 2014

Hi Brian,

even though there are programs with borrowers with as low as 500 fico score, we still need to review the credit to make sure that you qualify for the program. depending on what is the reason behind your low fico score you may not be eligible just because your fico score meets the requirements.

$commenter.renderDisplayableName() | 04.25.17 @ 20:33

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November 19, 2014

Hi Brian

The lower the credit score the higher the interest rate. Most mortgage loans under 620 requires a 10%+ down. So shoot for a 620 or above and make sure you have no recent negative info for at least 12 months. Collections, charge offs, etc. 2 years and younger should be taken care of.
T

terrision97 | 03.06.16 @ 15:11

Thanks that information was helpful but my score is 561 not sure if that fico score or what. Example how to take off negative without paying out the u know what lol

Dave Bradley, Investment Manager (Financial Advisor) in North Charleston, SC | 03.28.16 @ 16:16

Hi Terrision97, Creditors are not required to report information to a credit reporting agency, When you negotiate a debt settlement, ask to have any negative information about the debt removed from your credit files. The collection agency may tell you that this is not its decision—that only the original creditor can remove the information. Ask for the name and phone number of the person with the original creditor who has authority to make this decision. If the collection agency agrees to settle for less than you owe, be sure it also agrees to report the debt it holds as “satisfied in full” to the credit bureaus. Be sure to get written confirmation from the creditor and the collector. The debt collector’s confirmation should say that it will acknowledge the debt as paid in full when you pay the agreed amount. If the creditor (or the debt collector if it has the authority) agrees to delete the original account line, get confirmation that it will submit a Universal Data Form to the three major credit reporting agencies deleting the account/trade line. If the debt collector does not have authority to act for the original creditor to delete the account information on the original debt, you may need to write separate letters to the creditor and the debt collector. It's not what you make, It's what you keep that determines your lifestyle

$commenter.renderDisplayableName() | 04.25.17 @ 20:33

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December 04, 2014

FHA may approve a score as low as 500, but most lenders you come across have overlays and won't approve anything lower than 580 if not higher.

$commenter.renderDisplayableName() | 04.25.17 @ 20:33

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February 02, 2015

Sounds like you aren't exactly sure where your scores are, and that's the place to start. Have a lender pull your credit, tell you where your scores are, and what steps you can take to raise them if necessary. As earlier replies have indicated, minimum score requirements can vary. For instance, my bank only requires 600 scores for FHA or VA loans, whereas some lenders want 640 scores. Hope that helps, drop me a line if you have any other questions.

$commenter.renderDisplayableName() | 04.25.17 @ 20:33

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May 06, 2015

Ideally 620 +

$commenter.renderDisplayableName() | 04.25.17 @ 20:33

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May 20, 2015

All depends on the loan product you're wanting. Also keep in mind that all lenders aren't the same. Some will accept lower scores than others. I'd start with Home Loans For All. They'd be your best bet.

$commenter.renderDisplayableName() | 04.25.17 @ 20:33

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May 20, 2015

5/20/2015

Begin the pre approval process to find out for sure ..this process is easy / free and should be able to help you with all your other questions too ...all the best

$commenter.renderDisplayableName() | 04.25.17 @ 20:33

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April 12, 2016

Hi Brian, If you haven't already, do yourself a favor and have a lender verify your credit scores. Until you know where you're at, you won't have any idea what options you have. Note that credit bureaus use different scoring models for lenders than for consumers, so your Credit Karma report may not reflect your "real" scores. In general, you'll want a 580+ score to have much chance of obtaining a mortgage. It's important to remember that score requirements often vary by lender. While FHA's minimum required score for a 3.5% down loan is 580, some lenders require 600, 620, and even as high as 640 scores. A knowledgeable loan officer will also be able to give you specific advice on raising your scores. Don't just accept your scores as shown on the report, find out what you need to do to improve them! Hope that helps, Ted

$commenter.renderDisplayableName() | 04.25.17 @ 20:33

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May 26, 2016

Minimum FICO scores needed to qualify for a mortgage vary from lender to lender. We are 580 for FHA/VA and 620 for Conventional. But there is much more to qualifying for a loan that just a credit score.

$commenter.renderDisplayableName() | 04.25.17 @ 20:33

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