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 your monthly debts on credit 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 a 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 the minimum credit scores and down payment needed by program:
- 500: VA, FHA @10% Down, and 12-24 Months Bank Statements 25% Down
- 580: FHA 3.5%, USDA $0 Down, 12-24 Months Bank Statements @20% Down
- 620: Conventional – 3%-5% Down, 12-24 Months Bank Statement – 15% Down
- 680: 12-24 Months Bank Statements 10% Down, or 1 Month Bank Statement – 30% Down
- 720: 1 Month Bank Statement -20% Down
Chris Luis, Mortgage Broker, 800-991-3268
Contact me to see which program is ideal for you.
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