FICO Score Requirements for Mortgages Lowered
Have you been out looking for a home in Southeastern Massachusetts, only to be held back by 'not quite high enough' credit scores?
Well, I have some good news for you. Mortgage lenders have quietly lowered the credit score bar. It's now possible to qualify for an FHA or VA mortgage with credit scores as low as 580!
The minimum credit score for conforming conventional mortgages is still 660, but those with credit scores as low as 620 may considered on a case-by-case basis.
Of course, there are strict guidelines that you must adhere to in order to qualify for an FHA or VA mortgage. One requirement is you must show a housing history (owned or rented) of at least 24 months in the past 36 months, and no more than 1 late housing payment in the last 24 months (no late housing payments in the past 12 months).
Also, just because your credit scores are above 580 doesn't mean you can qualify for an FHA or VA mortgage. There are other factors that must be considered – such as income, debt-to-income ratios, payment history, and more.
Other requirements do apply, so be sure to talk to your mortgage lender or broker to see if you can get pre-approved for a mortgage today. If you don't have one, I can recommend a couple of very good mortgage originators to you.