Wondering how your credit score affects your mortgage options? Here’s the scoop:
Conventional Loans: You’ll need a credit score of 680+ to qualify. These loans are ideal for buyers with good to excellent credit.
FHA Loans: A minimum score of 620 is required. FHA loans are great for first-time buyers with moderate credit scores.
USDA Loans: These loans need a minimum score of 640. USDA loans are designed for rural homebuyers and offer great benefits.
VA Loans: There’s no official minimum, but most lenders prefer a score of at least 620. VA loans are a fantastic option for veterans and active-duty military members.
Down Payment Assistance Programs: Typically, a score of 640 is needed to qualify for these programs, which help with the down payment.
While you can technically get a loan with a 580 credit score, be prepared for much higher interest rates. The best rates are reserved for scores of 760+.
To keep an eye on your credit score, use apps like Experian or Credit Karma. They’re not 100% accurate but will give you a good idea of where you stand and what you can improve.
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Equal Housing Opportunity- this is not a credit decision
John Mamula Mortgage Services
jmamula@lrglending.com 916.871.8774
NMLS #1997276 / CA DRE Lic. #01019565
LRG Lending, Inc. NMLS #1635642 CA DRE Corp. Broker Lic. #02029476
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