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What credit score is needed to buy a house?

Does it have to be perfect? NO!

What credit score is needed to buy a house?

If you are planning to buy a home, you may be wondering what kind of credit score you need to qualify for a mortgage. Different types of loans have different minimum credit score requirements, and lenders may also have their own criteria. Here is a brief overview of the credit score ranges for Conventional, FHA, VA, and USDA loans.


Conventional Loans

Conventional loans are mortgages that are not backed by any government agency. They typically require a higher credit score than other types of loans, as well as a larger down payment and lower debt-to-income ratio. The minimum credit score for a conventional loan is usually 620, but some lenders may require a higher score depending on the loan amount, the property type, and other factors.


FHA Loans

FHA loans are mortgages that are insured by the Federal Housing Administration, a government agency that aims to help low- and moderate-income borrowers. FHA loans have more lenient credit requirements than conventional loans, and allow for a lower down payment and higher debt-to-income ratio. The minimum credit score for an FHA loan is usually 580, but some lenders may accept scores as low as 500 with a higher down payment.


VA Loans

VA loans are mortgages that are guaranteed by the Department of Veterans Affairs, a government agency that provides benefits to eligible veterans and their families. VA loans have no minimum credit score requirement, as long as the borrower meets the VA's eligibility criteria and the lender approves the loan. However, some lenders may have their own credit standards for VA loans, and may charge higher interest rates or fees for lower scores.


USDA Loans

USDA loans are mortgages that are subsidized by the United States Department of Agriculture, a government agency that promotes rural development. USDA loans are available to borrowers who meet certain income and geographic requirements, and who plan to buy a home in an eligible rural area. The minimum credit score required for USDA loans tends to vary among lenders, as long as the lender is able to verify the borrower's ability to repay the loan. Most lenders require a minimum score of 640 or higher for USDA loans. While some lenders may consider borrowers with credit scores below 640, they will usually require additional documentation to assess and verify credit worthiness.

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