Minimum Credit Scores- MINIMUMCREDITSCORES.COM

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  • Minimum Credit Scores

    MINIMUMCREDITSCORES.COM LENDER HOTLINE: 888-581-5008

    http://suited45trk.com/?a=75&c=1980&s1=&ts=mcsss

  • Credit Score Requirements forHome Loan Programs

    The largest concern most people have when looking to purchase a homeis what program they will qualify for given their credit score. It is nosecret that credit has been given a very important role in the applicationof any financial product, but when it comes to the mortgage, it isessential. Not every program has a cut and dry minimum credit score,but the guidelines are easy enough to understand to help you figure outjust where you are going to end up in your quest to become ahomeowner. As you navigate the world of mortgages, you will see thatthere are many different types of programs to choose from aside fromthe varying interest rates and fees that pop up. Among the mostcommon mortgage programs are conventional loans, subprime loans,FHA, and VA loans.

    MINIMUMCREDITSCORES.COM LENDER HOTLINE: 888-581-5008

    http://suited45trk.com/?a=75&c=1980&s1=&ts=mcsss

  • Credit Score Guidelines forConventional Residential Mortgages

    The most popular and typically most sought after loan is the conventionalloan and with good reason. This loan offers you the ability to have accessto the lowest rates and fees as well as the best terms. Conventional loans,however, are reserved for those with the best credit score and credithistory. It is also reserved for those that are going to put money down onthe home as the highest program conventional loans offer is theConventional 97, which as the name suggests, requires a 3% downpayment. Because these programs offer the lowest rates and mostreasonable fees, they also have the highest credit score minimums inorder to qualify for the program.

    MINIMUMCREDITSCORES.COM LENDER HOTLINE: 888-581-5008

    http://suited45trk.com/?a=75&c=1980&s1=&ts=mcsss

  • In general to qualify for a conforming loan, your credit should fall intoone of the following categories:

    Greater than 75% LTV and No Monthly Reserves

    With a debt ratio less than 36%, the minimum credit score is680With a debt ratio greater than 36% and less than 45%, theminimum credit score is 700

    Greater than 75% LTV and 6 Months of Reserves

    With a debt ratio less than 36%, the minimum credit score is660

    MINIMUMCREDITSCORES.COM LENDER HOTLINE: 888-581-5008

    http://suited45trk.com/?a=75&c=1980&s1=&ts=mcsss

  • Greater than 75% LTV and 2 Months of Reserves

    With a debt ratio greater than 36% and less than 45%, theminimum credit score is 680

    Less than 75% LTV and 2 Months of Reserves

    With a debt ratio greater than 36% and less than 45%, theminimum credit score is 620

    These figures are all based on a primary residence. If you are purchasinga second home, such as a vacation home or an investment home that youare going to rent out or sell after fixing it up, the credit score minimumsdiffer slightly, although the remaining stipulations remain the same.

    MINIMUMCREDITSCORES.COM LENDER HOTLINE: 888-581-5008

    http://suited45trk.com/?a=75&c=1980&s1=&ts=mcsss

  • Conventional Mortgage Qualificationsfor Second Homes

    Greater than 75% LTV with 2 Months of Reserves

    With a debt ratio less than 36%, the minimum credit score is 680

    With a debt ratio greater than 36% and less than 45%, the

    minimum credit score is 700

    Greater than 75% LTV with 12 Months of Reserves

    With a debt ratio greater than 36% and less than 45%, theminimum credit score is 680

    MINIMUMCREDITSCORES.COM LENDER HOTLINE: 888-581-5008

    http://suited45trk.com/?a=75&c=1980&s1=&ts=mcsss

  • Less than 75% LTV with 2 Months of Reserves

    With a debt ratio less than 36%, the minimum credit score is 640

    With a debt ratio greater than 36% and less than 45%, the minimum

    credit score is 660

    Less than 75% LTV with 12 months of Reserves

    With a debt ratio greater than 36% and less than 45%, theminimum credit score is 640

    MINIMUMCREDITSCORES.COM LENDER HOTLINE: 888-581-5008

    http://suited45trk.com/?a=75&c=1980&s1=&ts=mcsss

  • Investment Home Conventional Guidelines

    Greater than 75% LTV with 6 Months of Reserves

    With a debt ratio less than 36%, the minimum credit score is680With a debt ratio greater than 36% and less than 45%, theminimum credit score is 700

    Greater than 75% LTV with 12 Months of Reserves

    With a debt ratio greater than 36% and less than 45%, theminimum credit score is 680

    MINIMUMCREDITSCORES.COM LENDER HOTLINE: 888-581-5008

    http://suited45trk.com/?a=75&c=1980&s1=&ts=mcsss

  • Less than 75% LTV with 6 Months of Reserves

    With a debt ratio less than 36%, the minimum credit score is640With a debt ratio greater than 36% and less than 45%, theminimum credit score is 660

    Less than 75% LTV with 12 Months of Reserves

    With a debt ratio greater than 36% and less than 45%, theminimum credit score is 640

    MINIMUMCREDITSCORES.COM LENDER HOTLINE: 888-581-5008

    http://suited45trk.com/?a=75&c=1980&s1=&ts=mcsss

  • As you can see, the credit score incrementally decreases as thecompensating factors for the loan increase. The more reservesyou have on hand, the lower the credit score requirementsbecome. The same is true for the debt ratio the lower the debtratio, the lower the required credit score to qualify for aconventional mortgage.

    MINIMUMCREDITSCORES.COM LENDER HOTLINE: 888-581-5008

    http://suited45trk.com/?a=75&c=1980&s1=&ts=mcsss

  • FHA Mortgage Credit Score Requirements

    FHA mortgages used to be known as the first-time homebuyersmortgage, but today it is so much more. Anyone can obtain an FHA loan,whether they have owned a home before or not. As long as you meet therequirements, which are easier to qualify for than a conventionalmortgage, you can be a good candidate for this loan program which isbacked by the FHA. The thing to know about FHA mortgages is that it isnot funded by the FHA, which means that the qualifications for eachmortgage are generally set by the FHA as they will not back anunqualified loan, but the main requirements are set by the bank itself asthey are the ones funding the loan and/or selling it on the secondarymarket.

    MINIMUMCREDITSCORES.COM LENDER HOTLINE: 888-581-5008

    http://suited45trk.com/?a=75&c=1980&s1=&ts=mcsss

  • The minimum credit score for FHA loans is twofold: if you want tobe able to put down the minimum down payment of 3.5%, you willneed a credit score that is higher than 580. If you have a score lowerthan 580, you may still be eligible for an FHA loan, however, youshould expect to put down at least 10% on the home in order toobtain the loan. The lowest score that is allowed for an FHA loaneven with a 10% down payment is 500. Any score lower than thatwill not be eligible for the FHA program.

    MINIMUMCREDITSCORES.COM LENDER HOTLINE: 888-581-5008

    http://suited45trk.com/?a=75&c=1980&s1=&ts=mcsss

  • Aside from the minimum credit score required by the FHA, is theimportance of your credit history itself. In particular, the FHA isconcerned with your housing history, whether it reports on yourtraditional credit report or you have a rental history. If you have anylate payments in the last 12 months on your mortgage or rent, you willbe ineligible for an FHA loan, regardless if you meet the minimumcredit score requirements or not. The only exception to that rule is ifyou had any type of special circumstances, such as a serious illnessor injury that made it impossible to work or your company closed andyou lost your job. As long as you have recovered from the incidentand have improved your credit history since then, the one-time latepayment may be able to be overlooked.

    MINIMUMCREDITSCORES.COM LENDER HOTLINE: 888-581-5008

    http://suited45trk.com/?a=75&c=1980&s1=&ts=mcsss

  • VA Mortgage Credit Score Requirements

    VA mortgages are reserved for those that have served our country. TheVA has specifications regarding the length of time you must serve inorder to qualify, which you can find here. If you meet the requirementsand are able to get your Certificate of Eligibility (COE), you then have toqualify for the loan with your financial credentials, which is very easyto do because the requirements are much more relaxed thanconventional loans. VA loans, like FHA loans, are not funded by thegovernment, but are rather backed by it. This means that theyguarantee a portion of your loan should you default on it. This makes iteasier for banks to provide funding to our veterans, even if they do nothave very high qualifications for a loan.

    MINIMUMCREDITSCORES.COM LENDER HOTLINE: 888-581-5008

    http://suited45trk.com/?a=75&c=1980&s1=&ts=mcsss

  • As a general assumption, most lenders will not allow a VA loan with a creditscore that is below 620. Of course, like any other loan, there are lendersthat will take credit scores slightly lower as long as there are compensatingfactors and there are lenders that will require even higher credit scores toqualify. Because VA loans can offer up to 100% financing, it is a risky loanfor the bank, which makes them a little pickier on who they provide fundsto, but the guarantee from the government does help to offset that riskslightly. What VA lenders want is a financial picture that promotes security.They want a borrower that has a low debt ratio, reserves, and stableincome. If that is the case and the credit score is slightly lower than that620 minimum, they might grant an exception. On the other hand, aborrower with a low credit scor