The question of the minimum credit score needed to qualify for a home mortgage is a common one. While your credit score is only part of qualifying for a mortgage, it does have an impact on whether you receive the loan and what interest rate you lock in. So let’s dive into this question a little further:
The credit score needed to buy a home ultimately depends on the mortgage loan you apply for.
Generally speaking, you will need a credit score of at least 620 to get a conventional loan (Freddie Mac/Fannie Mae). For an FHA loan though, the minimum requirement is a 580 credit score. Other loan options like the VA loan (for veterans) do not require a minimum credit score. Be aware individual lenders may have different requirements.
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So what now?
Keeping up-to-date with your credit score is crucial when you’re planning to purchase a property. This helps to verify everything is correct and then you can work on repairing your credit if needed. If you’re looking to purchase a new house relatively soon, tell us HERE, and contact a mortgage lender to find out your options and get pre-qualified.
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What if I don’t have a credit score?
How do you get a mortgage loan if you don’t have a credit score? In some cases, someon may not have a credit score due to not having any debt for a long period of time and YES it is still possible to get a home mortgage without a credit score. Be prepared for a few extra steps though! In this case you will have to go through manual underwriting with your lender to qualify for a loan. The lender will likely require more documentation to determine if you are eligible for the loan.
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If you’re looking to get pre-qualified and apply for a home loan, Location Williamson works closely a mortgage team. They would love to start this process with you or answer any questions you have about credit scores and mortgages. Reach out here!
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