FICO score

What credit score do I need to get a mortgage?

Image ID 1193076 by Stock Exchange user svilen001The minimum FICO credit score needed to qualify for a mortgage changes frequently. As of February 2011, the general answer is … buyers need a FICO credit score of about 640 to qualify for a home mortgage.

BUT…  there are exceptions. Bottom line: if you have a score under 640 you might still qualify for a mortgage, but you’ll probably need more cash on hand.

From Rob Chrisman’s daily mortgage news email…

Wells Fargo reduced its minimum FICO's for FHA loans to below 600. Direct Mortgage Wholesale has done something similar by reducing its minimum FHA FICO to 580 ….  There are other requirements, of course, including 90% maximum LTV, no gift funds, etc.

Deleting the banker-speak, what this means in plain English is that buyers with FICO scores less than 640 probably are going to need to make a down payment of about 10% of the purchase price, and that money cannot be gifted to the buyer.

“Not gifted” doesn’t mean your money is stupid. It just means that the 10% cash down payment has to be the buyer’s own money, and sitting in their bank account for a couple of weeks before the purchase takes place.

Want to see if you qualify to buy a home? Have more questions? Give me a call or shoot me an email and I’ll connect you with one of my favorite loan officers. They’ll hook you up.

Heather Barr, Realtor
Chris & Heather, The Phoenix Agents @ Thompson’s Realty
602-999-8831 voice/text    
Heather@ThePhoenixAgents.com

read what clients say about realtor heather barr

Can I get my credit score for free?

No. Courtesy of the always wonderful Credit Bloggers,
Q: Where can I get my credit scores for free?

A: This has to be the question I’m asked more often than any other. You can get your credit reports for free, but credit scores – in particular, FICO scores – require a fee.

Source: Credit Bloggers

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AnnualCreditReport.com is the ONLY authorized source for the free annual credit report that's yours by law. The Fair Credit Reporting Act guarantees you access to your credit report for free from each of the three nationwide credit reporting companies — Experian, Equifax, and TransUnion — every 12 months.

Source: The Federal Trade Commission