An expert answer from Consolidated Credit’s Director of Housing Counseling
What credit score do I need to buy a house?
This video explores what the required minimum credit score is to buy a home as well as the ideal credit score to get the best mortgage interest rates. New regulations make it tougher to qualify for a mortgage, but the right strategy can help you get approved and out expert explains how.
[On-screen text] Ask the Expert: What credit score do I need to buy a house?
Hello, I’m Maria Gaitan, Director Housing Counseling. To get approved for a traditional mortgage, you generally need a FICO credit score of 620 and above to qualify for a good interest rate.
However, as a first-time homebuyer you can find financing options that allow you to qualify, even if you have a score in the 560 to 600 range. While you’re credit score is super-important to get approved for a mortgage, there are other factors to consider.
I recommend that you speak with a HUD-approved housing counselor to find out what your options are and what you need to do to become mortgage-ready. There are lenders willing to work with you, but you have to work on your credit to improve your chances.
Buying your first home is exciting. Best luck to you!
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