Before I answer this question, I want to let you know that while a higher credit score will definitely open up more financing options for you, credit is just one part of your entire borrower profile. Other parts include your down payment and what you have in the way of other assets.
That being said, I have many loan options that can accommodate a wide range of credit scores and profiles.
The majority of buyers today are using one of two programs to finance a home: conventional and FHA.
Conventional loans, which also go by the name Fannie Mae or Freddie Mac, are the most common loans.
To qualify for this type of loan, you’ll ideally want a credit score in the range of 720 or higher.
You can still qualify for these programs with lower credit scores, but you may pay more in lender adjustments and/or a higher interest rate. For the down payment, you’ll need 5 percent or more, based on your credit score.
FHA, another option, allows as little as 3.5 percent down, and ideally your credit score will be in the 620 or higher range.
Also keep in mind that even if you start your home ownership journey with a different credit score than you would have liked, in some cases you can improve this score in a short period of time.
If you would like me to check your scores or provide more details on how credit scores are a part of the home-buying process, give me a call. I’m here to help.