Home › Questions › Credit Score › What is a good credit score to buy a house?
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Kikoff.
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July 10, 2024 at 10:05 pm #439
Kikoff
KeymasterJuly 10, 2024 at 10:52 pm #477Kikoff
KeymasterA good credit score opens doors to better loan terms, lower interest rates, and higher credit limits. But, a low score can limit your financial options and cost you more in the long run.
For most people, buying a house isn’t as simple as handing over cash and moving in, requiring a mortgage.
The credit score you need to buy a house depends on what type of loan you’re applying for.
- A conventional loan requires a 620 FICO score (per the Federal Housing Financing Agency)
- An FHA (Federal Housing Administration) loan with a 3.5% down payment requires a 580 FICO score
- An FHA (Federal Housing Administration) loan with a 10% down payment requires a 500 FICO score
- A VA (Department of Veterans Affairs) loan does not have a credit requirement set by the VA, but lenders may require a 580 FICO score
- A USDA (U.S. Department of Agriculture) loan does not have a credit requirement set by the USDA, but lenders may require a 640 FICO score
- A Jumbo loan usually requires a 680 credit score or higher
Every type of loan has specific eligibility criteria, required credit score, and required down payment, so it’s important to do your homework and see what works best for you.
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