Home Buying in 10036>Question Details

Ronetta, Home Buyer in New York, NY

what is the perfect credit score # which i must in order to be given a loan?

Asked by Ronetta, New York, NY Mon Feb 6, 2012

Help the community by answering this question:


Hi Ronetta, How are you? Congrats on wanting to be a homeowner. A 720 FICO will get you a competitive rate but of course the higher your score, the better! You can certainly be approved with a score lower than 720 but the rate won't be as good. I wish you the best in your search.

Looking forward,

Christine Gordon
Licensed Real Estate Salesperson
Cell: 917.881.2924
Fax: 347.328.9352
Apartment updates available at http://www.christinegordon.postlets.com
"Home is where the heart is."
3 votes Thank Flag Link Sun Dec 9, 2012
I would contact a lender and ask them this question. There is more than just the credit score that determines whether or not you can obtain a loan.
0 votes Thank Flag Link Thu Jan 15, 2015
Or even above 700, but ask a lander
0 votes Thank Flag Link Wed Dec 18, 2013
the credit score should be above 690
0 votes Thank Flag Link Wed Dec 18, 2013
Hello Ronetta,

We just head a meeting with our preferred lender and of course the perfect score should be in the 700- 800. Otherwise, the least score I have been told that a lender can work with is 620. Again this is what i learned during the meeting and it is of course to be verified since I am not a lender. It is all to be verified when they run your credit score.
Fern hamberger
VP Asso broker
Citi-habitats Relocation
0 votes Thank Flag Link Sun Dec 9, 2012
The minimum credit score should be at least 640, however the higher the score the better interest rate you can command. Your credit score is only one factor that is looked at before you can be given a loan. Other factors your lender will look is your current monthly minimum debt repayment in relation to your income, and the home you proposed to buy (known at DTI or debt to income ration); work history (you typically need to be working in the same job or industry for at least two years), your schedule A, (how much of that income did your accountant write off in your tax returns for the past two years ( that now will not be considered available income by the lender). I recommend you speak with a loan officer just to get an idea of where you are now and perhaps he or she can prepare you financially, if you're not there already, for home ownership. Good luck.
0 votes Thank Flag Link Sat Feb 18, 2012
I would contact a lender to discuss, because there are many other factors in getting a loan other then your credit score the minimum is usually 620 but the higher the better as far as the finace rate.
0 votes Thank Flag Link Thu Feb 9, 2012
Hi Sam. I've gone to many seminars held by some of the big Banks as part of my continuing education as required by NY State. The mantra seems to be about the same. A minimum FICO score of 740 is considered a first tier risk or, the least amount of risk. After that it goes on 19 point incriments (720-739; 700-719, etc). Banks would be very pleased if you would also put down 40% of the purchase price. Depending on price, not everyone is going to have 40%.

There is more. Great credit is one aspect, a buyer will need more. A solid work history with reasonable income will be part of the equation as will be any outstanding debt for loans (school, car, etc). This all goes to your debt to income ratio. Hopefully you don't have some type of judgement against you or a foreclosure. Good luck.
0 votes Thank Flag Link Thu Feb 9, 2012
It depends on what type of loan program you will be applying for. If you are applying for and FHA loan then the minimum credit score is 640. If you are applying for a conventional loan you will want you credit to be at least 680. Obviously these are the minimums and the higher your score the better rate you will qualify for. Credit scores are only one part of the equation when applying for a mortgage. Another big factor that lenders look at is your debt to income ratio, job stability, reserves and payment history. If you have any further questions you can reach me at (347) 242-1206.
0 votes Thank Flag Link Tue Feb 7, 2012
Dear Sam,

This question prompts my answer to please reach out to an expert.
I highly recommend Justin Keesey of CHASE Bank.

justin.c.keesey@chase.com or call him 718-614-5610.

best wishes in your purchase endeavors.

Truly yours,
Amy Rea
0 votes Thank Flag Link Tue Feb 7, 2012
Depends on the type of loan and lender. But credit score is only one item, have your Realtor hook you up with the lender they trust the most, then look at the entire picture not just one tiny piece. good luck,
0 votes Thank Flag Link Tue Feb 7, 2012
You will want to make sure that you have over 720 to get frist tier lending rates that save you a ton of money. Even a drop of 20 basis points on your middle FICO score can cost you 1/2 a point for the life of the loan.

Lenders typically take the middle score of the 3 credit reporting companies (experian, transunion, equifax). Make sure you pull a tri-merge credit score to acurately see what your credit history is like.

Read more about how credit can affect your rate as a borrower and save you some money:

Jennifer Chiongbian
SVP/ Asociate Broker
Rutenberg Realty NYC
0 votes Thank Flag Link Tue Feb 7, 2012
Keep in mind that there are other factors besides credit that determine mortgage qualification; therefore do visit with any licensed loan officer for a personalized answer. Generally the better the score the better the rate; for an FHA loan most lenders prefer 640....
0 votes Thank Flag Link Tue Feb 7, 2012
While it's theoretically possible to score 850, most high scores top off around 825. Only approximately 13% of consumers have achieved scores over 800. You will be able to find someone to give you a loan regardless of your credit score. You might have to put down a larger down payment and pay a higher interest rate, but even if you have the world’s worst score of 300, someone will give you a loan – you’ll just pay dearly for it.
Web Reference: http://www.clovelake.com
0 votes Thank Flag Link Tue Feb 7, 2012
Hi Sam,

I understand your question, but let me be clear about something there are two types of mortgage loans: Portfolio Loans and Loans that are sold in secondary markets.

Portfolio lenders, those who hold your mortgage and service it, are less concerned about the actual score, they look at the history. Their underlying guidelines are much different than the lenders who underwrite to sell the mortgage to FNMA or Freddie Mac. Loans that get underwritten to be sold have more standardized guidelines and the score will determine the pricing and risk tier qualification.

That being said, you must also understand that you must have verifiable income and seasoned assets. Credit alone does not determine the outcome. If you are looking for a stated income program then the score itself becomes the most important factor, as income can no longer be verified.

To have good established credit all you need is 3 credit lines that show a history of use and repayment. Some loans will allow you to add alternative forms of credit (rent history, utility bills etc...)

Also remember, there are multiple factors that determine your credit score.
1. Amount of available credit
2. number of inquiries
3. judgments
4. tax leans
you get the picture.

Basically, if you make enough money to qualify, have enough money to put down and keep in reserve, pay your bills on time and can prove it, you can get a loan.

0 votes Thank Flag Link Tue Feb 7, 2012
Good advice from Anoop, Sam. However first contact a reputable/qualified Loan Officer and Real Estate agent who can do a pre-approval for you so you know where you are heading. That way they should be able to see if FHA or some other financing option is available. They will approve buyers with lower than 620 scores as long as job, income, and debts are in line.

Best of luck to you. Freecreditreport.com freecreditscore.com annualcreditreport.com are a few sites to order FREE credit reports or under $20 if you print them out on line. Make sure they give you the score as that is critical.

Good luck, Happy Purchasing.

0 votes Thank Flag Link Tue Feb 7, 2012
Hi Sam,

Most lenders require a minimum score of 620 to qualify for a loan, however the higher your score, the better the rate you are quoted as it indicates a lower risk factor for the banks. In addition to credit scores, other factors are also taken into consideration. The debt to income ratio and amount of down payment also affect the rate you will receive.

I suggest you run your credit reports with each of the 3 bureaus so you are aware exactly what information is in there and correct any errors then contact any major lender & get yourself pre-qualified before starting your search for buying an apartment.

Anoop Punjabi
City Connections Realty
0 votes Thank Flag Link Tue Feb 7, 2012
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