What Credit Score is Needed to Buy a House
What credit score is needed to buy a house?
Apply for a
2024 FHA loan.
FHA minimum credit score is 500. New FHA policy requires a minimum
credit of 500 to buy a home or refinance. In the old days FHA did not
require any credit score. These changes went in to effect in 2010.
To buy a home you will need a minimum credit score of 500.
Borrowers with credit score above 580 require a 3.5% down payment. The funds can be a gift from a family member and a 6% seller's concession is allowed. Often, 12 months of rental history is required for credit score below 620.
If you have credit scores below 580 new FHA changes require a 10%
down payment. All funds must be the borrower's own funds. Gifts funds are
allowed and seller's concession up to 6% is allowed. Often, 12 months of rental history is required
for credit score below 620.
Apply for a FHA loan
online.
To refinance your mortgage you need a minimum credit score of 500.
Borrowers with a credit 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 with credit score below 580.
Most lenders require a minimum credit score of 640 for a
2024 FHA loan.
Whether you're planing to buy your first home, refinance, lower your
monthly payments, buy a second home, consolidate debt or get
pre-approved for a mortgage. A perfect credit score is not needed for an
FHA loan approval.
In fact, even if you have had credit problems, such as a
bankruptcy, it's easier for you to qualify for an FHA loan than a for a
conventional loan. Credit scores down to 500 are accepted if there are
compensating factors that offset the credit risk.
- HUD homes for sale $100 down payment
- First time home buyer
- What credit score is needed to buy a house
What documentation will I need?
• Personal tax returns for the past 2 years with W2's
• Current pay stubs for the past month
• Bank statements for last 2 months (all pages)
• Latest retirement statement for each active account (all pages)
• Sales contract (purchase)
• Clear copy of Driver’s License (front and back)
• Clear copy of SS card (front and back)
What credit score is needed to buy a house?
Call us 888.958.5382
Mortgage World Home Loans of New Jersey is an online mortgage company specializing in FHA loans for first time home buyers. To buy a home with 3.5% down payment and a minimum credit score of 580 using an FHA loan, apply now.
We look forward to working with you.
Call us 888-958-5382
www.MORTGAGE-WORLD.com LLC is an online mortgage company specializing in FHA loans for first time home buyers.
We look forward to working with you.
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Minimum Credit Score Needed to Buy a House
* FHA requirements new borrowers will now be required to have a minimum credit score of 580 to qualify for 3.5% down payment
* FHA loan requirements new borrowers with less than a 580 credit score will be required to put down at least 10%
FHA Credit Score
Requires a minimum credit score of 500 to buy a home or refinance
Collection accounts
A collection is minor in nature usually does not need to be paid off as a condition for loan approval
Bankruptcy
Chapter 7 Bankruptcy at least two years must have elapsed since the discharge date
Foreclosure
Foreclosure must have been resolved for at least 3 years
- Government loan: Seasoning is determined by the date the claim was paid
- Loans other than Government: Seasoning is determined by the date of sale the lender sold the property
Short Sale
FHA guidelines requires three year past from the date of sale of the property
Call Now, Our Staff is Available
888-958-5382
Call Now, Our Staff is Available
888-958-5382