Home Buying in 01201>Question Details

Bellahcleani…, Home Buyer in 01201

how high does my credit score have to be to buy a house?

Asked by Bellahcleaning, 01201 Sun May 22, 2011

Help the community by answering this question:


I think 580 can is the lowest. You need to visit a bank that looks at mpore than just a number.
1 vote Thank Flag Link Mon May 23, 2011
Congrats on having great credit! Having high credit scores surely makes life a lot easy today, but good credit is only one side of the equation. Your income is another major factor in figuring out what you qualify for and the amount of your debt significantly can change your options. What having great credit scores does provide you better loan terms, lower rates and fees, and we lenders can push the qualifying ratios higher due to a higher scores. If you'd more information, please feel free to contact me.

Best of Luck!

George Raymondo
Nationwide Mortgage Banker
1 vote Thank Flag Link Sun May 22, 2011
Its always good to discuss financial matters with lenders. They are the experts in their line of work. Reach out to a local lender. Agents usually work with lenders and so if you work with one they should be able to suggest.
0 votes Thank Flag Link Tue Aug 4, 2015
You are best off seeking out a local lender and having a frank discussion about your financial picture. They will go over your finances, and will check your credit reports. Sometimes errors are found that are hurting your credit score, and you can correct them. Local lenders will coach you, not push you into something you really should not be buying. They will show you ways to improve your position so you don't land in financial hot water, and can buy responsibly. Remember that the higher your score, the better the interest rate you will likely be able to secure, and that could really affect the kind of home you will be able to afford. Let the lender guide you to a strong position and from there, knowing what you can realistically afford, you can start looking at properties with a Realtor. Good luck on your home search!
0 votes Thank Flag Link Sun Aug 2, 2015
what about in NM? i have three different scores and im looking for a house ?
0 votes Thank Flag Link Wed Oct 29, 2014
There are so many variables in buying a home and your credit score. Speaking to agents and getting referrals to good lenders is a great first step. If you are in the 01201 area I would recommend Heather at Academy Mortgage in Dalton 413-684-3140 Good Luck~
0 votes Thank Flag Link Wed Jul 2, 2014
Through its new program, Back to Work—Extenuating Circumstances, the waiting period for most borrowers is now just 12 months instead of the typical three, seven or 10 years.

Borrowers must have experienced what the FHA calls “an economic event” that resulted in loss of employment, loss of income, or a combination of both that reduced their household income by 20 percent or more for a period of six months or more.
Borrowers must be able to demonstrate that they have fully recovered from the event. If they went into foreclosure due to losing a job, for example, they must be able to prove that they are now employed.
0 votes Thank Flag Link Sat Nov 30, 2013
It depends what financing you are going with, 625 and up usually but it all depends on you and your lender. If you are from Berkshire County I could help find you a great lender and house :0)
0 votes Thank Flag Link Sat Nov 30, 2013
FHA Credit Score Requirements:

530: Minimum credit score required to qualify for an FHA loan and satisfy FHA Credit Requirements
530-579: Credit scores in this range will qualify for a minimum down payment of 10%
580: Minimum credit score required to qualify for a minimum down payment of 3.5%
620: Accepted by a small number of mortgage lenders
640: Typical minimum credit score required by mortgage lenders.

Joel Lobb (NMLS#57916)
Senior Loan Officer
502-905-3708 cell
502-813-2795 fax

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
Web Reference: http://kentuckyusdaloan.com
0 votes Thank Flag Link Sun Jul 14, 2013
Credit Score- Most Louisville Mortgages that are originated currently must have a middle credit score of 640. If you have below this score it is extremely difficult to get approved for a Kentucky Mortgage loan.

Employment- Mortgage underwriters will look at your last 2 years of work history and see if you were able to maintain a stable work history with no job gaps or income losses.

Debt to Income Ratio- Most lenders will try to hold your maximum mortgage payment pre-approval amount approval to a third of your gross monthly income. For example, if you make $4000 gross monthly, the maximum house payment would be $1200 a month. There are some compensating factors that will allow for a higher loan approval if you have a large down payment or a lot reserves in savings after the loan is made. A credit score of 740+ will sometimes allow for a debt to income ratio to exceed 31% of your gross income monthly income too.

Down payment -Most lenders will want to verify that you have the minimum down payment saved up, or have access to the down payment via a gift from parents or from your retirement account will proper documentation in the file. Kentucky FHA loans currently require 3.5% down payment and Conventional loans backed by Fannie Mae and Freddie Mac require a minimum down payment of 5%. There are some special programs thru VA and USDA that require no down payments for Kentucky Home buyers.

Joel Lobb (NMLS#57916)
Senior Loan Officer
502-905-3708 cell
502-813-2795 fax

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
0 votes Thank Flag Link Sun Jul 14, 2013
Hello Bellahcleaning

We have lenders whose guidelines require 620 as the middle credit score.
In order to attract an even lower interest rate, a credit score of 680+ is in your favor.

If you have a low score it could mean that you are carrying a high balance on your credit cards or that you are near your max available credit or there is a collection, judgments old medical bill etc. If it is credit card related, I suggest that you pay down the debt and allow for your score to rise before applying for a mortgage.

Our credit reports provide a tool called "What If", this tool gives you an idea but no guarantee of exactly how much your score will rise, however you can expect to see some improvement.

A low credit score effects more than just your mortgage interest rate: When applying for homeowner's insurance they too will look at your credit score to determine what they will charge you for coverage. Your credit worthiness is also being considered when apply for a job; employers are looking to see how you handle your credit.
Even is my industry, if I/we don't have good credit, we may not be allowed to be licensed and not be able to provide sound advise if we cannot maintain our own credit in good standings

I welcome the opportunity to work with you to investigate just how much improvement to your credit score you could expect. You can reach me directly at 508 733 4858 Barry Little Licensed Mortgage Loan Originator NMLS 24772 http://www.MassLoanInfo.com
0 votes Thank Flag Link Thu May 26, 2011
There are other factors besides credit that determine mortgage qualification, therefore consider visiting with any qualified loan officer, after reviewing your overall financials, credit, debt, etc., a determination on qualification can be made, the type of loan, how much, how much down, etc., then go from there. Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Mon May 23, 2011
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