You can buy a home with a low FICO Score.
FICO credit scores range between 300 and 850. However, we have home loans available to you, even if you have a low FICO score.
Government and non-government loans have their own minimum credit score requirements, and some mortgages are specifically designed to help lower credit applicants get into homes.
Regardless of your credit it is always with taking with a mortgage professional to find out your loan options. You may be closer to qualifying than you think.
Here are some different options to know about:
-1- FHA home loans: FHA requires a minimum 500 credit score, while some lenders will not go that low, we have lenders that will accept this low score. Contact us to discuss your situation.
-2- VA home loans: /the VA does not impose a minimum credit score requirement. However, most lenders will want to see a minimum credit score between 580-620 before approving a VA loan.
-3- USDA home loans: Most lenders will require a 640 FICO score to qualify for a USDA loan, although some will go as low as 580. USDA homeowners with a 580 credit score will be more carefully evaluated than those with a higher credit score.
-4- Conventional loans: Non-government conventional mortgage loans require higher rates and fees for low credit scores. However, fees are based on the borrower’s loan-to-value ratio and their credit score.
-5- Home Possible®: Home Possible® is available for low and moderate income borrowers, and allows for a down payment of just 3%. To qualify for the Home Possible® loan with reduced PMI rates, most lenders will require a 620 or better credit score.
-6- Fannie Mae HomeReady™: In addition to the low down payment option of just 3%, one of the most appealing traits of the HomeReady™ program is that it allows non-borrower household member’s income, regardless of their credit scores. Most lenders require a minimum of 620 in order to qualify for HomeReady™.
-7- Non-qualified mortgage (Non-QM): Credit score requirements for non-QM programs can vary, but many lenders offering non-QM loan products will go down to credit scores as low as 500.
Do not assume that you cannot get a home loan. Contact Us to discuss your situation and options.