Is 640 the key factor!

Anonymous · ‎01-22-2015

I will be looking into a home loan this year. What is the key factors for a home loan and what should your credit score be to qualify?

Thanks Everyone

gdale6 · ‎01-23-2015

580 FHA & VA

660 Conventional

Revelate · ‎01-23-2015

@gdale6 wrote:
580 FHA & VA
660 Conventional

Doesn't Fannie go down to 620 based on their Eligibility Matrix?

Peter1142 · ‎01-24-2015

Most banks overlay a 640 minimum score requirement. While you can get some loans with a lower score, in most cases there will be a high interest rate attached.

StartingOver10 · ‎01-24-2015

Agree that 620 for conventional is where the market is now. 660 sounds like a lender overlay. IME I haven't seen the 640 requirement for either conventional or FHA for at least a year.

FHA can go to 500 but then there are other changes to the loan required (mainly larger down payment of 10%). Most lenders I have worked with will tell you that you can get a FHA loan at a min of 600.

Remember lenders change their guidelines as the market changes.

Anonymous · ‎01-24-2015

Thank You!

ezdriver · ‎01-25-2015

@StartingOver10 wrote:
Agree that 620 for conventional is where the market is now. 660 sounds like a lender overlay. IME I haven't seen the 640 requirement for either conventional or FHA for at least a year.

FHA can go to 500 but then there are other changes to the loan required (mainly larger down payment of 10%). Most lenders I have worked with will tell you that you can get a FHA loan at a min of 600.

Remember lenders change their guidelines as the market changes.

But isn't a 640 score still required for automated underwriting on an FHA loan?

StartingOver10 · ‎01-25-2015

Not from what I have seen. Here is a better explanation: http://www.fhahandbook.com/credit-scores.php