As a lender, one of the first things we look at is credit. However, bad credit means different things to different people. The standard guidelines to purchase a new home using an FHA mortgage will mean that you need a minimum 640 credit score with most lenders. For a conventional mortgage you will need at least a 660. There are some lenders that will go down to a 620 minimum credit score, however, the guidelines tend to be more rigid. Please also note that a lot of times buyer's are basing their credit score from one of the credit scoring sites, such as Freecredit.com, truecredit.com or some derivation of these. The scores on these sites are typically not as accurate as one from your local lender, as these scores and accounts are bought from the credit bureaus. If you'd like further information to find out exactly where you are, please feel free to give me a call. I'd be happy to assist you further. With regards to good income and large down payment, these also play a factor in your loan, however, credit is usually the first stop. Hope this helps.
Cecelia Marlow - Vice President
The Federal Savings Bank