Credit score to buy a house

Credit Score to Buy a House

The lowest FICO score to buy a house 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

Fannie Mae and Freddie Mac requires a 620 credit score to buy a house. Fannie and Freddie offer home buyer programs that require only 3% down payment.

Their mission is to help ensure that home buyers and home owners have access to mortgages. Offering programs such as HomePath, Conforming and Conforming High Balance.

FHA allows borrowers with credit score above 580 to make a 3.5% down payment and up to 6% seller concession to purchase a home.

If you have credit credit score below 580 new FHA changes require a 10% down payment. The funds can be a gift from a family member and up to 6% seller concession is allowed.

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. Cash-out refinance up to 75% with credit score below 580.

VA allows veterans to buy a home with no money down with a minimum score of 500. VA guidelines allows a veteran to buy a home using their own funds, gift funds and up to 4% seller concession for closing cost.

USDA loans requires a middle credit score of at least 580. The home to be purchased must be located in an eligible rural area as defined by the USDA. Income eligibility for the USDA Rural Development home loan program are derived from calculating 115% of the counties median income.

Portfolio loans are loans that do not conform to Fannie Mae or Freddie Mac Guidelines. Jumbo loans are portfolio loans and require 15% down payment up to 1 million dollar with no mortgage insurance and 20% down payment up to 1.5 million.