2016 Credit Score for Mortgage Approval 

2016 Credit Score for Mortgage Approval


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 550


Credit score

The lowest credit score to buy a house or refinance is 500. New requirements for both FHA and VA require a minimum credit score of 500.

  • Fannie Mae requires a minimum score of 620
  • Freddie Mac requires a minimum score of 620
  • FHA requires a minimum score of 500
  • VA requires a minimum score of 500
  • USDA requires a minimum score of 580
  • Portfolio requires a minimum score of 640

Debt-to-income

Debt to income ratios are the calculations underwriters use to determine whether a borrower can qualify for a mortgage. They are used to determine if you have the capacity to repay your mortgage.

The maximum debt to income ratio is 54.99% and a minimum credit score of 640. Most lenders will limit maximum debt-to-income to under 50% and some lenders to 45%.

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.

Down payment

There are 6 different types of programs that you may qualify for. Each program has a different down payment requirement:

  • Fannie Mae minimum down payment 5% with above 620 credit score
  • Freddie Mac minimum down payment 5% with above 620 credit score
  • FHA minimum down payment 3.5% with above 580 credit score 10% down payment with below 580 credit score
  • VA zero down payment with minimum credit score of 500
  • USDA zero down payment with minimum credit score of 580
  • Jumbo loans minimum down payment 15% with above 720 credit score
  • 2016 Credit score for mortgage approval

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Call us 888.958.5382


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

Application

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



FHA purchase FHA refinance FHA 203k loan FHA cash out $100 down loan

FHA loan requirements - ‎FHA loan limits - ‎FHA loans - ‎FHA Streamline


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Minimum credit score needed to buy a house or refinance

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New Jersey Location

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800.516.9166

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FHA

Requires a minimum credit score of 500 to buy a house or refinance

FHA minimum

credit score 500

FHA streamline

requires no minimum credit score to refinance

FHA streamline

no minimum credit score

VA

Requires a minimum credit score of 500 to buy a house or refinance

VA minimum

credit score 500

HARP refinance

requires no minimum credit score to refinance

HARP no minimum

credit score

Fannie Mae

Requires a minimum credit score of 620 to buy a house or refinance

Fannie Mae minimum

credit score 620

Freddie Mac

Requires a minimum credit score of 620 to buy a house or refinance

Freddie Mac minimum

credit score 620


Call Now, Our Staff is Available

888.958.5382

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