Prospective home buyers should aim to have this credit score to qualify for the best interest rates on mortgages. However, the minimum credit score requirements vary.
1. Conventional loan
Minimum credit score required: 620
2. Jumbo loan
Minimum credit score required: 680
3. FHA loan
Minimum credit score required: 500 (with 10% down) or 580 (with 3.5% down)
4. VA loan
Minimum credit score required: None officially, though many lenders prefer 620
5. USDA loan
Minimum credit score required: None officially, though most lenders prefer 640
Credit scores typically range from 300 to 850, and borrowers within a certain range can qualify for mortgage loans. While you don’t need a perfect 850 credit score to get the best mortgage rates, there are general credit score requirements you will need to meet in order to take out a mortgage.
New home buyers should aim to have credit scores of 760 or greater to qualify for the best interest rates on mortgages.
However, the minimum credit score requirements vary based on the type of loan you take out and who insures the loan. Of our list below, conventional and jumbo loans aren’t insured by the government and often have higher credit score requirements compared to government-backed loans, like VA loans.
Having a higher credit score makes a big difference in the amount of money you pay over the course of a loan. Borrowers with scores in the higher range can save thousands of dollars in interest payments over the life of a mortgage.
Credit Services of America has assisted many people in becoming qualifying homebuyers after utilizing one of our credit repair packages. We find it extremely rewarding when after completion of our program that our clients get to realize their goals.
A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!
*Individual results may vary. Please call for more details and to discuss your own individual situation.
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