Bad Credit Home Mortgage Loans Minimum FICO Credit Score Requirements Needed for Approval
The future of your mortgage loan and the ownership of the home you have in mind depends on your three-digit credit score. Keep in mind that the minimum FICO credit score you need to get a mortgage loan is ultimately the decision of your individual lender.
The lowest acceptable score to get a mortgage loan is a 620 credit score and the minimum score to get a mortgage loan with the best rates available is about 730. So if you’re looking to get the best rates possible, your credit score should ideally meet or exceed a 730 credit score.
Minimum credit score requirements for FHA home loans depend on which FHA loan product the applicant needs. Generally speaking, to get maximum financing on typical new home purchases, applicants should have a credit score of 580 or better. Those with credit scores between 500 and 579 are, according the the FHA guidelines are limited to 90 percent “LTV” — loan to value.
Those with past credit problems can often improve their scores over time and become eligible even under the new updated FHA minimum credit score requirements. The first step is to request help from the FHA for credit counseling or first time home-buyer counseling.
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