1,076,551
1 I can help with:
FHA - 500 FICO to qualify for FHA financing, however to take advantage of the 3.5% down product, the score needs to be 580 (below 580 requires 10% down and some other standards need to be met)
VA - there isn't a minimum FICO required by VA, per se, but most lenders (all that I know of) want to see a 620 or higher (some even have higher minimums of 640+)
Conventional - 620 is the common benchmark and a requirement for FannieMae loans. FreddieMac actually doesn't have a minimum FICO, but it's generally extremely difficult to get an approval through their LP system with anything less than a 620. Some affordable/community products will go a little lower.
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Kat Palmiotti
Kalispell, MT
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Debe Maxwell, CRS
Charlotte, NC
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John Meussner
Fair Oaks, CA
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Carol Williams
Wenatchee, WA
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Olga Simoncelli
New Fairfield, CT
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JoAnn Moore
Georgetown, DE
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Fred Griffin Florida R...
Tallahassee, FL
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Dario Ferreira
Attleboro, MA
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Lyn Sims
Schaumburg, IL
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Roy Kelley
Gaithersburg, MD
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Michael Jacobs
Pasadena, CA
417,221
VA there is no legal minimum. Every lender has different rules. Here is why:
Wells Fargo sells to Freddie Mac and they have a high repurchase history - therefore they have more strict "overlays" ie: they require higher FICO middle score than most
Chase sells to Fannie Mae and they also have a bank "overlay" but not as heafty as Well's
The score that is used is a MORTGAGE credit report which is often lower than a consumer one. We use of all the borrowers the LOWEST middle score.
My minimum FHA is 500, conventional 520, and VA is all case by case
I can broker a 480 to 4 places - the borrower needs other factors to make up for the low score.
Every lender is goin to have a different bar.
Keep in mind FICO is a big part of interest rate. The lower the score bracket the higher the rate
Call me if you need a specific scenario solution
A bank or credit union is stricter on scores. A mortgage banker can sell a really low score to someone; but the borrower will pay a high rate. This leads to another question and problem if the rate is too high - it's considered a "high priced loan" and our government makes lenders give these away for free if a lender makes a mistake. a bank is always going to turn down a low score because the additional points and higher rate goes over the rule here:
https://www.consumerfinance.gov/policy-compliance/rulemaking/regulations/1026/35/
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Kathleen Daniels, Prob...
San Jose, CA
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Carol Williams
Wenatchee, WA
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Olga Simoncelli
New Fairfield, CT
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Fred Griffin Florida R...
Tallahassee, FL
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Lyn Sims
Schaumburg, IL
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Roy Kelley
Gaithersburg, MD
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Michael Jacobs
Pasadena, CA
7,836,134
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Olga Simoncelli
New Fairfield, CT
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Michael Jacobs
Pasadena, CA
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Ron and Alexandra Seigel
Carpinteria, CA
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
4,572,173
No need for a website when one has a reliable mortgage partner available.
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John Meussner
Fair Oaks, CA
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Debe Maxwell, CRS
Charlotte, NC
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Fred Griffin Florida R...
Tallahassee, FL
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Roy Kelley
Gaithersburg, MD
375,087
What Roy mentioned is correct but lenders typically also have overlays that will only allow them to go down to a certain credit score. Most A paper lenders will go down to a credit score of 620 but will add an "adjustment" to the pricing for lower scores (Loan-to-Value ratios also determine this amount). There are lenders that will go down to 580 (and below -think hard money) but there is a hefty cost to it.
It really depends on the individual loan parameters when you get below 680 (loan type, property type, loan amount, LTV, credit score).
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Debe Maxwell, CRS
Charlotte, NC
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Fred Griffin Florida R...
Tallahassee, FL
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Roy Kelley
Gaithersburg, MD
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Michael Jacobs
Pasadena, CA
5,772,575
Fred,
Looks like Roy has part of your answer. I recently found this site for a friend who found it very useful.
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Debe Maxwell, CRS
Charlotte, NC
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Fred Griffin Florida R...
Tallahassee, FL
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Roy Kelley
Gaithersburg, MD
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Michael Jacobs
Pasadena, CA
2,390,620
Great question Fred Griffin Tallahassee Real Estate and I wish I had a good answer for you. As a remote closer I used to see credit reports in every loan package, now it's almost rare.
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Debe Maxwell, CRS
Charlotte, NC
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Roy Kelley
Gaithersburg, MD
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Michael Jacobs
Pasadena, CA
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Fred Griffin Florida R...
Tallahassee, FL
5,229,951
Looks like our guy, John Meussner has you covered, Fred!
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John Meussner
Fair Oaks, CA
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Fred Griffin Florida R...
Tallahassee, FL
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Michael Jacobs
Pasadena, CA
3,125,819
I trust a few lenders in my selling area for that type of information, rather than going online. You got some fantastic answers Fred!
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Debe Maxwell, CRS
Charlotte, NC
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Fred Griffin Florida R...
Tallahassee, FL
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Michael Jacobs
Pasadena, CA
911,338
Sometimes varies by lender and by state. https://www.presidentialbankmortgage.com/Loan-Programs/FHA-Loans
website- myfico usually has helpful info.
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Debe Maxwell, CRS
Charlotte, NC
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Fred Griffin Florida R...
Tallahassee, FL
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Michael Jacobs
Pasadena, CA
247,599
1. There are lenders that will go down as low as 580 FHA/VA on purchase and refi loans. 2. Go to the horse's mouth on credit scores, www.myfico.com. This is the company that comes up with the scoring models.
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Debe Maxwell, CRS
Charlotte, NC
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Fred Griffin Florida R...
Tallahassee, FL
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Michael Jacobs
Pasadena, CA
378,517
Clearly different lenders have different scores, the lender we use (and I just came from a closing with him) will not do FHA below 620
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Debe Maxwell, CRS
Charlotte, NC
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Michael Jacobs
Pasadena, CA
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Fred Griffin Florida R...
Tallahassee, FL
1,844,291
Yikes Fred, 500 seems too low to buy a home with. I always ask a LO if there will be a problem.
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Debe Maxwell, CRS
Charlotte, NC
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Michael Jacobs
Pasadena, CA
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Fred Griffin Florida R...
Tallahassee, FL
3,345,091
Looks like Caroline Gerardo has this one covered and provides a resource link.
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Michael Jacobs
Pasadena, CA
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Fred Griffin Florida R...
Tallahassee, FL
225,526
John Meussner has your correct answer. Thanks John.
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Michael Jacobs
Pasadena, CA
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Fred Griffin Florida R...
Tallahassee, FL