What Should Be Your Credit Score To Get Home Loan?

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Lenders forecast loan payback based on a borrower's three-digit credit score. Higher scores imply a higher likelihood of debt payback and vice versa.

The Best Credit Score

In general, a credit score of 740 or higher will allow you to acquire the best possible loan rate and make finding a lender easier.

Enough Credit Score

However, many lenders may be willing to deal with you if you have a minimum credit score of 670. However, lenders utilize many credit rating systems to make decisions.

Even 500 Can Make Your Qualify

Depending on other factors, such your income and debt, a credit score as low as 500 may make you qualified for a mortgage loan.

FHA Loan

FHA loans are government-insured (but not government-issued) loans that enable buyers with less-than-perfect credit and smaller down payments to purchase a house.

Credit Score for FHA Loans

In rare cases, you can qualify for an FHA loan with a credit score as low as 500, but in the majority of cases, you'll need a score of 580 or better.

VA Loans

A VA loan is a federal loan available to active-duty and veteran military members, as well as their eligible surviving spouses.

Credit Score for VA Loans

The VA does not limit your credit score or the amount you can borrow, although the maximum no-down-payment loan amount in many counties is $647,200.

USDA Loans

A USDA loan is a mortgage with no down payment for low-income rural and suburban homeowners with properties of 2,000 square feet or less.

Credit Score for USDA Loans

These loans feature interest rates as low as 1 percent, and candidates with credit scores below 640 may qualify for USDA funding.

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