The credit score you need to qualify for a mortgage loan will depend on the loan type and many other factors. Take a look at the following examples:
VA Loan
No minimum credit score requirement; instead VA requires a lender to review the entire loan profile to make a lending decision. (Source: benefits.va.gov)
FHA Loan
According to FHA.com, applicants are now required to have a minimum FICO score of 580 to qualify for the low down payment advantage, currently at around 3.5 percent. If your credit score is below 580, however, you are not necessarily excluded from FHA loan eligibility. Applicants with lower credit scores will have to put down a 10 percent down payment if they want to qualify for a loan. (Source: fha.com)
USDA Loan
According to usdaloans.com, there is no minimum credit score to qualify for a USDA mortgage guarantee home loan. If your credit report shows that you’ve made your payments on time and you have good to stellar credit history then you’ll likely be able to move forward with no problem but even if you’ve had issues with payments or not so good credit history, you may still have a shot! (Source: usdaloans.com)
Conventional Loan
According to bankrate.com, the average credit score, of homebuyers qualifying for a conventional mortgage loan in 2016, was 753.
Remember that each homebuyer’s situation is unique so a credit score that may seem favorable coupled with a change in income or increased debt could affect your mortgage loan pre-approval amount or qualification.
If you have questions about getting a mortgage loan or want to talk it over, comment below or feel free to contact us at Benchmark Mortgage Omaha:
Eric Almquist, Branch Manager (NMLS #623826): Office: (402) 933-1141
Eric is a 19-year veteran of the mortgage industry who’s blessed to have remarkable client relationships. These relationships have allowed him to be recognized in the Scotsman Guide as one of the “Top 200 Loan Originators in the Country” since 2008. By leveraging his team and building clients for life, he’s fortunate enough to call myself a billion dollar producer!
Benchmark Mortgage, Ark-La-Tex Financial Services, LLC NMLS #2143, Equal House Opportunity