It really depends on the lender and on the type of loan you are looking to get. If going FHA, I have lenders that would accept a 580 middle score or below. With a conventional loan, your credit score will need to be higher and that requirement is driven by the lender you select. Lenders will also look at your debt to income ratio to determine how much you can afford to buy as well as your credit history. If you need a good lender and a good Realtor to help you, give me a call today at (704) 322-3710.
For any further questions, feel free to contact me directly at (704) 724-7943. I will be more than happy to also tell you about the down payment assistance programs as well as 100% financing options.
One of the most important things you must have to qualify for a loan to Buy a Home in Charlotte, NC or SC, is a perfect payment history for the last 12 months- this means on time payments for EVERY bill and ALL accounts that are in your name and everyone else who will be on the loan. If you don't have this payment history, you need to start today.
We have recently helped Buyers with 12 months of perfect payment histories purchase homes - even though their middle credit scores were just over 580 FICO. Lenders look at the middle credit score. If you meet the criteria in the Trulia Blog "I have bad credit and no savings. Can I get a home or am I stuck renting?" (http://goo.gl/1gbem) and have a 580+FICO, you can almost certainly get a loan with 3.5% down and maybe less. We also know of several lenders that do not require a minimum credit score for income qualified buyers.
The down payment amount (e.g. 20%) will affect the total amount borrowed and therefore your monthly payment more than it will your interest rate. More info about credit scores is in the below web reference. We can also help you find lenders with good interest rates. If you appreciate an answer, please give "thumbs up". For the most helpful answer, please say thanks with a "best answer" click.
I'd be happy to send you the name of a few lenders I use.
Allen Tate Realtors
If you have a credit score of 640 and no money to pay down there are still a few programs that will let you acquire a property for no money down, such as USDA, VA, or a few first time homebuyer programs offered through a limited number of resources.
If you would like the contact information for a local lender who has some programs of that nature please feel free to call me and I will be happy to assist you with that data. I also have a two page guide I have written for first time homebuyers that answers a lot of questions about the process. You may find that information helpful, as well.
Blessings upon you...