Credit Score Needed to Buy a House in Florida

Credit score needed to buy a house in Florida

We hear it all the time!

What's the minimum credit score for an FHA loan approval?

The lowest credit score to buy a house or refinance your mortgage is 500. These new requirements for both FHA and VA went into effect in 2010.

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

When you apply for a mortgage your monthly income minus your monthly liability determines your maximum loan amount. Mortgage loan requirements include a maximum debt to income ratio. When a borrower applies for a mortgage, they are required to disclose all debts, open lines of credit, and all possible approved sources of regular income. Using this data, the lender can calculate the borrower's debt-to-income ratio.

Most lenders will limit maximum debt-to-income to under 50%
The maximum debt to income ratio is 54.99%
Manual underwriting maximum debt to income ratio is 43%
Credit score needed to buy a house in New Jersey

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 5.0% with above 620 credit score
Freddie Mac minimum down payment 5.0% 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
Portfolio minimum down payment 15.0% with above 720 credit score

FHA requires a minimum credit score of 500. There are no income limits like you may find with first time home buyer programs. However, there are limits on how much you can borrow.

203(b) FHA purchase program provides mortgages for home buyers to purchase a principal residence with a low down payment and with lower credit standards.
203(k) FHA purchase program is for the rehabilitation and repair of single family properties. Providing both the financing to purchase a property and the financing to make repair. The program offers an important tool for expanding home ownership opportunities.

Eligible Property/Project Types

Single Family Residence (one unit, attached or detached including town homes row homes)
Manufactured Homes
HUD Owned Properties
Modular Home
Pre-cut Home
Panelized Home
Multi-family (two to four units)
Mixed-Use Property
Condominium
Planned Unit Development (PUD)
Move-on 55+ Age Restricted Communities
Co-ops

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)