Does it have to be perfect? NO!
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 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 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 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 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.
Laura H. & Christopher M.
We were initially denied by a lender and when our possibilities were limited, Mr. Krauss helped us achieve our dream of getting a model home. My husband is a Veteran and he informed us of discounts and grants that we were not aware of.
Nicholas M.
I was well informed every step of the way never left me guessing all ways their when I had a question all ways very professional and respectful I had a pleasant experience.
Bonnie M.
Consistent communication and being able to trust the process. Richard closed my purchase after it was denied by another lender due to my low credit.
Natalie D.H.
Richard's quick response to any issue or questions I may have had. And his expertise in getting it all handled quickly. I am Self Employed, he was able to close the loan before the due date.
Lorine C.J.
Richard has successfully completed several refi’s for us which is why we brought our latest refi need to him. Our communication was excellent and our current refi went smoothly.
Nadine W.
Richard was able to close my VA Purchase ahead of time with a low credit score of 520. His expertise overcame every hurdle within the process.
Bryan P.
Richard took the time to help a homeless disabled Veteran into a new home. No one would help except for him. He explained how to qualify and executed my purchase ahead of schedule with the builder!
Roberto R.
I was in an active Chapter 13 Bankruptcy, Richard was able to contact the court for approval and assist with my new purchase. He then provided me with the SAH Grant information for disabled Veterans and helped with my disabilities in the new home.
Greg S.
Richard is my old high school friend. We both served in the military, and he was able to explain how I can purchase with a lower credit score. My family has a beautiful home and we are able to start our next chapter!
David S.
Richard executed a Cash Out refi to purchase an investment property. The loan was approved withing 5 Days. Extremely quick turn around and awesome communication. He always answered my questions.
