620 is minimum, but on top of that, debt to asset ratio, job stablity and income verifiable. At low score you also pay a risk adjustment premium to the rate, so you hear 4% now for best credit, that means a low credit borrower would actually get a loan at 5 or 5.5%... more
The acceptability of a credit score depends on the lending institution and the type of loan you're pursuing. FHA hasn't had a minimum score for some time, but most FHA lenders require at least a 620 score. The FHA guidelines are changing and a minimum score is likely. Some lower credit scores are workable for select lenders dealing with higher risk loans. Their requirements at these lower scores might be more money needed for down payment or considerably higher interest rates (or both). I'm not a lender and may be missing something. I suggest you call Pam Mahon with Real Living Mortgage at 614-273-6366. She is an FHA expert and Real Living Mortgage has a joint venture with Wells Fargo Mortgage. They have many, many loan programs and lower credit scores can be improved over time if not accommodated immediately. I hope this helps. Call my office if you need additional resources or have other questions. 614-273-7735.
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