Wondering what is the minimum credit score to buy a home? You’re not alone! Your credit score is one of the major components to qualifying for a mortgage, and can greatly affect your interest rate. Generally speaking, the absolute minimum credit score requirement is 620. However, there are a lot of variables to consider.
For an FHA loan, you will be required to have a credit score of at least 620 (prior to 2009, the minimum was 580), although sometimes this score may have to be a bit higher.
Conventional mortgages may be a bit stricter. Every lender and program operates a bit differently, but it is more difficult to secure a mortgage with a credit score of 620 (although it has been done!). In the conventional mortgage world, 640-660 tends to be the magic number, but you’ll benefit greatly from having a score in the 700+ range, as you’ll pay significantly lower interest rates and significantly less for your private mortgage insurance (“PMI”).
So, what if your score is below 620? Or, what if your score is above 620 but you’re concerned about paying a too-high interest rate? You have options! Consider reaching out to a credit repair agency for affordable, personalized assistance.