As Jefferson stated, for FHA 620 is typically the minimum fico score. We can actually go down as low as 580 if you do have good compensating factors.

For Conventional loans the minimum credit score is more like 720 -740 in todays market. This requirement is being made by the mortgage insurance companies, so if you have at least 20% down you may go down to 680.

Mark
951.237.3741
MarksHomesAndLoans@hotmail.com

As Jefferson stated, for FHA 620 is typically the minimum fico score. We can actually go down as low as 580 if you do have good compensating factors.

For Conventional loans the minimum credit score is more like 720 -740 in todays market. This requirement is being made by the mortgage insurance companies, so if you have at least 20% down you may go down to 680.

Mark
951.237.3741
MarksHomesAndLoans@hotmail.com

Hi Samlani,

There are two reasons that you might have a low credit score, first if there are "negative" remarks on your credit reports and second if you have too much debt that you are servicing on your credit reports. There are three types of credit, secured credit such as a mortgage, unsecured credit such as credit cards and installment credit such as a car loan. If you have "negative" items such as late payments, car repo's, etc then you need credit restoration.
However, for example if your unsecured credit your credit cards are causing a "drag" on your score, then in order to boost your score you will need to pay those credit cards down to 30% of the credit limit. For example if your credit limit is $3k, then you do not want to carry a balance of more than $1k each month. If you pay down the credit card balances then you should get a credit score boost and you can go to your favorite mortgage broker and have them pull your credit reports to see if you qualify for a mortgage.
I have a stable of mortgage brokers in California that I like to use who are honest and do good work.
However, if you need credit restoration that I would be very happy to assist you with this.
Good luck!

Hi

Jefferson is right, but that is only 1/3 of what is taken into consideration a loan approval. You also have to worry about debt ratio (how much money you have coming in compared to how much money you have going out on car payments, student loans, credit cards and any other fixed loan), how long you have been at your job and that you have provable income. If you have any foreclosures on your credit and if you have any lates on a previous house payment in the past year.

Your best bet is to talk to a lender instead of trying to figure it out on your own. Most lenders can actually help you with straighten out your credit if necessary and tell you what you will need to do or save to get your home. They will also give you an idea of what your payments might be which is important information in the search for a home.

Also if you find the home of your dreams you would now be ready to make an offer and if it is a great deal (which there are a lot of them out there) you will have the opportunity to be able to put in an offer and not have to wait for an approval letter.

Diana 909-945-5763

Well it does depend. But that aside, you generally need at least a 620 for most FHA loans (3.5% or more down). You might get away with less with a few select lenders if you have a superior debt-to-income ratio. But don't count on it. With FHA, some people seem to think that credit doesn't affect the rate - but it seems that this may well be area and/or lender specific.

For conventional loans, a 680 or better is adviseable. Note - a better credit score can affect the rate that you will get with these.

Hi Samiani,

It really depends on what type of financing you need. Different types of financing have different requirements.

Regards,
Jonathan