Luckily, you don’t need impeccable credit to buy a home.
For instance, official FHA guidelines say you can get a 3.5% down loan with a 580 score.
Apply with many lenders, especially if you have a lower credit score.
Check your eligibility for a low-credit home loan here.
(Oct 31st, 2018) Credit score minimums The following minimums apply to the major loan types available in today’s market Conventional/conforming: 620 minimum credit score FHA loans: 580 minimum score (3.5% down); 500 score (10% down) VA loans: No minimum score per guidelines, but lenders set minimums around 620 USDA loans: 640 minimum, although some lenders will approve lower scores Keep in mind that if you have banged-up credit, an FHA, VA, or USDA loan might suit you best.
Conventional loans come with high rates for applicants with credit scores below 680.
If you’re in the market to buy a home, it’s best to know your credit issues so you can start addressing them.
Other times, you have to make timely payments for 6-12 months before your credit score starts rising again.
How do I check my eligibility for a home loan?
The first step to buying a home is to get pre-approved via an application with a lender.