If you’re buying a loft or condo for sale in DLTA, you know that your credit score is important – but what credit score do you need to buy a home?
Here’s the scoop.
What Credit Score Do You Need to Buy a Home?
It’s really important to check your credit score before you start searching for a home for sale in Los Angeles – that way, you know how good your odds of approval are and whether you should do a little work to improve the interest rates and terms lenders are willing to offer you.
So what credit score do you need to buy a home?
According to Credit Sesame, among their members:
- Those who have a conventional mortgage have an average score of 682
- Those who have an FHA mortgage have an average score of 649
- Those who do not have mortgage loans have an average score of 613
But the bottom line is this: In order to qualify for the best terms and rates, lenders want your score to be above 720.
If you plan to apply for a conventional loan that’s backed by Fannie Mae or Freddie Mac, you need a credit score of at least 620. If you’re using an FHA loan, the lowest your score can be is 580.
Some lenders can change the game, depending on how much you’re putting down and how much you make each year.
The higher your credit score is, the better terms and rates your lender will offer you.
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