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.
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.
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.
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 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.
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.
A VA loan is a federal loan available to active-duty and veteran military members, as well as their eligible surviving spouses.
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.
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.
These loans feature interest rates as low as 1 percent, and candidates with credit scores below 640 may qualify for USDA funding.