Advice Topics

Top Contributors (View All)

Chris Yochum
Dickson Realty

Reno, NV

123 Answers
Lisa and Greg Harris
eXp Realty, LLC

Columbia, SC

91 Answers
Marty & Abby Champagne
RE/MAX Market Place

Oak Creek, WI

83 Answers
Julianne Clark / Your Lowcountry Realtor
Charter One Realty

Beaufort, SC

68 Answers
Steven Hunt
Real Broker NY LLC

NEW YORK, NY

60 Answers
Lynne Pruell
Realty 100 LLC

South Barrington, IL

47 Answers

Find a Top Real Estate Agent Near You

What credit score is needed to buy a house?

What credit score do I need to buy a house? I have decent credit, and I want to make sure I can get the loan I want.

Asked By James | Heath, OH | 224 views | Finance Legal Info | 9 months ago

Answer(4)

Rising Star

20 Answers

Jamie Merwin

ZMD REALTY

If you have at least a 580 credit score, you qualify for an FHA loan with a down payment of 3.5% (or between 500 & 579 with 10% down payment). Obviously, the better your credit score, the better interest rates you qualify for & lower down payment options. Speak to a professional mortgage broker for more details & to get pre-qualified.

7 months ago
Helpful (0)
Unhelpful (0)

Novice

3 Answers

Victoria Valle

Danberry Co Realtors

(398)

The credit score needed to buy a house can vary depending on the type of loan you are seeking and the lender’s requirements. Here’s a general overview to help you understand the typical credit score ranges for different types of home loans: Conventional Loans: Minimum Score: Typically, a minimum credit score of 620 is required. Best Rates: To qualify for the best interest rates, aim for a score of 740 or higher. FHA Loans: Minimum Score: The Federal Housing Administration (FHA) requires a minimum score of 580 for a 3.5% down payment. Scores between 500-579 may qualify, but require a 10% down payment. Flexibility: FHA loans are more forgiving of lower credit scores and are a good option for first-time homebuyers or those with less-than-perfect credit. VA Loans: Minimum Score: The Department of Veterans Affairs does not set a minimum credit score, but most lenders prefer a score of at least 620. Eligibility: These loans are available to eligible veterans, active-duty service members, and some members of the National Guard and Reserves. USDA Loans: Minimum Score: The U.S. Department of Agriculture typically requires a minimum score of 640. Location and Income: These loans are intended for rural and suburban homebuyers who meet certain income requirements. Jumbo Loans: Minimum Score: Jumbo loans, which finance amounts higher than conventional loan limits, usually require a minimum score of 700 or higher. Down Payment and Reserves: These loans often require a larger down payment and significant cash reserves. Tips to Improve Your Credit Score: Pay Bills on Time: Timely payments on all your accounts will boost your score. Reduce Debt: Lower your credit card balances and avoid taking on new debt. Check Your Credit Report: Ensure there are no errors and dispute any inaccuracies. Maintain Older Accounts: Keeping older accounts open can improve your score. Additional Considerations: Debt-to-Income Ratio (DTI): Lenders also look at your DTI ratio, which is your total monthly debt payments divided by your gross monthly income. A lower DTI ratio is favorable. Down Payment: A larger down payment can sometimes offset a lower credit score. If you’re planning to buy a home, it’s a good idea to check your credit score and consult with a mortgage advisor to understand your options and what steps you might take to improve your creditworthiness.

5 months ago
Helpful (0)
Unhelpful (0)

Are you ready to find a top agent near you?

Browse profiles of the highest ranked agents in your area and find one that meets your specific needs.

Novice

2 Answers

Julie Walck

Newman-Dailey Resort Properties, Inc.

(9)

FHA loan requirements of 2024 Credit score: Minimum credit score of 580 (or 500 with a higher down payment) Down payment: 3.5 percent (or 10 percent with a credit score between 500 and 579)