How good does my credit need to be to be approved for a home loan?

I just wan’t to know what kind of credit score you need in order to be approved for a home loan?

By | 2013-08-27T11:19:12+00:00 August 27th, 2013|Mortgages Home Loans Interest Rate|6 Comments

About the Author:

6 Comments

  1. Christina August 27, 2013 at 2:09 PM - Reply

    FHA loans require a minimum 620 but with your credit history, that probably won’t be enough. For starters, any mortgage lender will require that all derogatory items be settled before approving you. That would include that judgment for the car repo. You will also need a longer good payment history.

  2. Quicken Loans August 27, 2013 at 1:34 PM - Reply

    Hi Lo,

    You can actually get a FHA or VA loan with a credit score of 580 now, as Quicken Loans is one of the few who are offering this. However, this excludes FHA Streamline and you probably won’t be able to get 100% refinancing of your home’s worth if you’re at 580.

    If you are interested in refinancing or buying a home I suggest you speak with a trusted mortgage professional and then both of you can decide what’s best.

    Let me know if you have any other home loan questions. I’ve included some links that have more in-depth info on home loans that may be useful. Good luck!

  3. My Take on It August 27, 2013 at 1:26 PM - Reply

    FHA is a median score of 620

  4. bdancer222 August 27, 2013 at 12:42 PM - Reply

    You need a minimum of 620 to aply for a FHA laon, but that might not be enough for approval. You need at least 720 for a conventional loan, plus 20% down.

    Score is only a very, very small part. Your actual credit reports are much more important. Other factors include: debt to income ratio, stable employment history, salary, other assets, downpayment …

  5. kdw1000 August 27, 2013 at 12:32 PM - Reply

    If you are applying for an FHA loan you need a minimum of a 620. However, there are three different scores provided to the lender before approval. There is one for Experian, Equifax and TransUnion. All three of these may be different. You may have a range of 550, 600 and 650. Although one of the scores is above 620 this will not be enough. The lender uses the middle score for approval or denial. So, in essence, you will need to have two of the three scores at 620 or higher.

    Good luck.

  6. Steve D August 27, 2013 at 12:15 PM - Reply

    About a 620 with recent good credit payment history.

Leave A Comment