Credit score requirements to buy a house

Credit score requirements to buy a house


FHA requires a minimum credit score of 500

VA requires a minimum credit score of 500

Fannie Mae minimum credit score of 620

USDA requires a minimum credit score of 580


Credit score

Borrowers with a credit score above 500 are eligible for an FHA loan.

  • New borrowers will now be required to have a minimum credit score of 580 to qualify for FHA's 3.5% down payment program
  • New borrowers with less than a 580 credit score will be required to put down at least 10%

Borrowers with a score above 580 can refinance up to a 97.5% loan-to-value on a rate and term refinance. And up to 85% cash out refinance with a credit score above 580.

If you have credit score below 580 new FHA changes require a maximum loan-to-value of 90% for a rate and term refinance and up to 75% cash out refinance.

FHA income

Regardless of the FHA loan limit for your area, the amount of loan you qualify for depends on your income and ability to pay. Under FHA standards, you should spend no more than 31% of your monthly income on your mortgage, property tax, and insurance.

Credit score below 620 maximum debt-to-income ratio is 43%. In addition, credit score above 620 you should spend no more than 54.99% (DTI) of your income on total debt payments, including student loans, car loans, and credit card debt.

Collection accounts

FHA does not require collection accounts to be paid off as a condition of mortgage approval. However, FHA does recognize that collection efforts by the creditor for unpaid collections could affect the borrower’s ability to repay the mortgage.

  • If evidence of a payment arrangement is not available, the lender must calculate the monthly payment using 5% of the outstanding balance of each collection, and include the monthly payment in the borrower’s debt-to-income ratio.
  • YouTube credit score needed to buy a house

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www.MORTGAGE-WORLD.com LLC is an online mortgage company specializing in FHA loans for first time home buyers.



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FHA minimum down payment of 3.5%

VA loan no minimum down payment

Fannie Mae minimum down payment of 5%

USDA no minimum down payment


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What's the minimum score to buy a house


FHA credit score

FHA requires a minimum 500 credit score to buy a house

500 credit score

VA credit score

VA requires a minimum 500 credit score to buy a house

500 credit score

Fannie Mae credit score

Fannie Mae requires a minimum 620 credit score to buy a house

620 credit score

Freddie Mac credit score

Freddie Mac requires a minimum 620 credit score to buy a house

620 credit score


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