When you’re getting ready to buy a home, it’s a good idea to talk about credit.
Selling your home? Get a home valuation.
Buying a home? Search the local MLS.
Today we're talking about credit. More specifically, we’re talking about the minimum credit score requirement for an FHA loan. The reason we’re focusing on the FHA loan here is that it has the lowest barrier to entry for buyers.
FHA stands for the Federal Housing Administration. They are the ones that come out with all the different guidelines and rules. The FHA-approved lenders are the ones who enforce these rules. FHA-approved lenders typically require a 580 minimum credit score. If you’re below that, you may still be able to qualify, albeit with a 10% minimum down payment. However, hitting that 580 market will ensure that you can get a loan with a 3.5% down payment.
When you’re getting ready to buy a home, it’s a good idea to set aside some money for closing costs. There was a time when I could tell my clients that we could get their closing costs covered by the seller, but we’re not in that kind of market anymore. The market is so tight now and homes are moving so quickly, by the time we submit an offer on a property there will most likely be other offers to compete against. That means that we have to make sure your offer is as attractive as possible.
If you’re not quite at that 580 credit score, you should consult with a mortgage professional so we can make sure you qualify for a home. Also, remember to keep some money set aside for your closing costs. I’d be setting you up for failure if I told you there weren’t going to be any.
If you have any questions for me, don’t hesitate to reach out and give me a call or send me an email. I’d be happy to answer any questions you may have.
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