Lenders use a borrower's three-digit credit score to anticipate loan repayment. Higher scores indicate more possibility of debt repayment; lower scores indicate less likelihood.
In general, a credit score of 740 or better will enable you to obtain the best potential loan rate and make it easier to find a lender.
However, many lenders may be ready to work with you if your credit score is at least 670. However, several credit scoring algorithms are used by lenders to make decisions.
You may be eligible for a mortgage loan with a credit score as low as 500, depending on additional variables such as your income and debt load.
FHA loans are government-insured (but not government-issued) loans that allow purchasers with less-than-perfect credit and smaller down payments to acquire a home.
In rare instances, you can qualify for an FHA loan with a credit score as low as 500, but in most circumstances, you'll need a credit score of 580 or higher.
A VA loan is a government loan that is accessible to active-duty and veteran service members, as well as their surviving spouses if they qualify.
The VA doesn't limit credit score & how much you can borrow, but the no-down-payment loan cap is $647,200 in many counties.
An USDA loan is a zero-down-payment mortgage for rural and suburban low-income homeowners with 2,000-square-foot or smaller properties.
These loans include interest rates as low as 1%, and applicants with credit scores below 640 may be eligible for USDA financing.