Wealthy Living

What's the Minimum Credit Score To Buy A House?

Even the most financially aware customers may find credit ratings to be a complicated subject.

Most people know that having a good credit score increases the likelihood of being approved for a mortgage since it demonstrates to the lender that the borrower is likely to make the loan payments on time.

For this reason, many lenders have minimum credit score requirements for the loans they provide.

So, what should a prospective borrower’s credit score have to be for a lender to approve a mortgage? And as for the minimum, how many people know that credit score depends on the kind of mortgage they want?

What’s The Needed Minimum Credit Score to Buy a House?

A credit score is essential when buying a house because it shows the history of how that person has handled debt.

Additionally, having good credit makes the home buying process simpler and more economical – because a higher credit score implies a lower mortgage interest rate for someone who qualifies.

Minimum Credit Score Required By Mortgage Loan Type

1. Conventional Mortgage Loans

Home loans with conventional mortgages adhere to the guidelines established by Freddie Mac and Fannie Mae. No government organization guarantees them.

2. FHA Loans

FHA loans are usually less risky for lenders and, as a result, easier to qualify for than conventional mortgages because the Federal Housing Administration insures them.

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