A good credit score for buying a home typically falls within the range of 670 to 850, although specific lender requirements may vary. Here’s a breakdown of credit score ranges and how they are generally perceived by lenders:
Excellent Credit: 800 to 850
Borrowers with excellent credit scores are likely to qualify for the best interest rates and loan terms. They demonstrate a history of responsible credit management and pose minimal risk to lenders.
Very Good Credit: 740 to 799
Borrowers with very good credit scores still qualify for favorable loan terms. While not at the highest tier, they still demonstrate strong creditworthiness and reliability in repaying debts.
Good Credit: 670 to 739
This range is considered good credit and is usually sufficient for qualifying for most types of loans, including mortgages. Borrowers in this range may still receive competitive interest rates, although not as favorable as those with higher scores.
Fair Credit: 580 to 669
Borrowers with fair credit may face more scrutiny from lenders and may encounter higher interest rates or additional requirements, such as larger down payments. However, obtaining a mortgage is still possible within this range.
- With approved finding we can we go down to a 3.5% down payment FHA with a score of 580 and above! Call us today about these options and if you would qualify.
Poor Credit: Below 580
Borrowers with poor credit scores may find it challenging to qualify for a mortgage through traditional lenders. They may need to explore alternative financing options or work on improving their credit before applying for a mortgage.
- For below 580, with approved finding or able to pass a manual underwrite, you can do a 10% down payment FHA! Call us today about these options and if you would qualify.
While credit score is an important factor in obtaining a mortgage, lenders also consider other aspects of a borrower’s financial profile, such as income, employment history, debt-to-income ratio, and down payment amount. Contact us today to see what options you have – It is our job to shop around and compare offers from multiple lenders to find the best mortgage option suited for you!
Have questions? We are here to help to answer any questions – We are available for you 7 days a week, even on nights and weekends.
Phone: (815) 582-9066 & (815) 593-4122
Email: [email protected]