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What is the minimum credit score required to get a mortgage loan?

Asked by Trulia New York, New York Tue Mar 5, 2013

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Javier Meneses’ answer
Typically 620. But that all depends on what loan programs you qualify for and what the minimum down payment requirements are these programs. I recommend you meet face-to-face with a Loan Officer who works for a direct lender. Allow them to review your credit and all other required documents to determine if you qualify, and take it from there.

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
4 votes Thank Flag Link Tue Mar 5, 2013
BEST ANSWER
Every lender sets their own bar when it comes to minimum credit scores. Currently, I'm able to qualify borrowers for both FHA (standard & jumbo) & Conventional products with a minimum score of 620. Aside from the score, there may additional guidelines that must be met with regards to delinquencies, collection accounts, judgments, foreclosures, short sales, tax liens, loan modifications, bankruptcies, and I'm sure there are a few more I'm forgetting. Meeting the minimum credit score is the most important, but ensuring all other credit related obstacles are overcome is of equal importance. A great, free, way to monitor your score is with Credit Karma, which reports your TransUnion (one of the three major Credit Reporting Agencies) score.
0 votes Thank Flag Link Wed Mar 6, 2013
There are stringent requirements on credit score when it comes to financing on Manhattan. Even a 620 score might come into question, which is considered "fair".
0 votes Thank Flag Link Thu Mar 14, 2013
FHA will go down to the 580 credit score however many banks will aplly their own individual overlays that make obtainign this type of financing very difficult. There will need to be other substantuial compensating factors inclduing but not limited to, bigger down apyment, solid jog history and income and more reserves than ordinary deal.
0 votes Thank Flag Link Wed Mar 6, 2013
Christopher says:
"Hi, Tjhe FHA says it will back mortgages with a minimum of a 580 credit score (higher down payment required)"
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This is not true.

Here's what FHA actually says. The information is readily available via HUD ML 10-29 at this link: http://portal.hud.gov/hudportal/documents/huddoc?id=10-29ml.pdf

"Borrowers with a minimum decision credit score at or above 580 are eligible for maximum financing. (That means 3.5% down)

Borrowers with a minimum decision credit score between 500 and 579 are limited to 90 percent LTV. (10% down)

Borrowers with a minimum decision credit score of less than 500 are not eligible for FHA-insured mortgage financing.

Borrowers with a non-traditional credit history or insufficient credit are eligible for maximum financing but must meet the underwriting guidance in HUD 4155.1 4.C.3."


If agents want to post whatever their "preferred" lenders have available, that's one thing, but to post misinformation about FHA guidelines is completely something else. People hate when I correct them here, but it wouldn't happen if they either;

A) posted correct information
or
B) Did not post if they did not know the answer.
0 votes Thank Flag Link Tue Mar 5, 2013
I see typically 640 for FHA, any "FICO" score lower usually comes with unfavorable terms.

Janet Nation, CBR
Sailing Home Realty
Direct: 646-321-9649
Office: 516-377-4760
Licensed Real Estate Salesperson
http://www.jnationproperties.com
0 votes Thank Flag Link Tue Mar 5, 2013
Hi, Tjhe FHA says it will back mortgages with a minimum of a 580 credit score (higher down payment required) but finding a lender that will fund a loan below 620 is really tough these days.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
William Raveis Legends Realty Group
914.406.9023
0 votes Thank Flag Link Tue Mar 5, 2013
The typical minimum credit score is 640. Few lenders will do 620 or above.
0 votes Thank Flag Link Tue Mar 5, 2013
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