What FICO Score Do You Need to Qualify For a Mortgage in Champaign - Urbana?
Many people are under the impression that they need a FICO score of 700 or more to qualify for a mortgage to buy a home in Champaign - Urbana. But the good news is that this isn't the case.
With lower interest rates, now is a great time to buy a home in Champaign - Urbana. Yet misinformation often hold buyers back from pursuing a home purchase.
According to a CNBC article, “For the first time, the average national credit score has reached 706, according to FICO®, the developer of one of the most commonly used scores by lenders.”
The good news is that in general, Americans are improving their credit scores and building toward a stronger financial future. And with a stronger economy and higher wages, this has helped people to build their credit.
Yet this still doesn't mean you need a higher score to get a mortgage. According to the credit reporting company Experian:
FHA Loan: “FHA loans are ideal for those who have less-than-perfect credit and may not be able to qualify for a conventional mortgage loan. The size of your required down payment for an FHA loan depends on the state of your credit score: If your credit score is between 500 and 579, you must put 10% down. If your credit score is 580 or above, you can put as little as 3.5% down (but you can put down more if you want to).”
Conventional Loan: “It’s possible to get approved for a conforming conventional loan with a credit score as low as 620, although some lenders may look for a score of 660 or better.”
USDA Loan: “While the USDA doesn’t have a set credit score requirement, most lenders offering USDA-guaranteed mortgages require a score of at least 640.”
VA Loan: “As with income levels, lenders set their own minimum credit requirements for VA loan borrowers. Lenders are likely to check credit scores as part of their screening process, and most will set a minimum score, or cutoff, that loan applicants must exceed to be considered.”
So the point is that there are a number of ways you can get a loan with a lower FICO score. Why wait? Give us a call today to see how we can help you make your dream of owning a home in Champaign - Urbana come true.
You can rely on Rose Price to help you understand the home buying process in Champaign County. We can help you find the perfect home in Champaign- Urbana. Our powerful home search feature can help you start the process. Make sure to check back on our blog every week for more Champaign - Urbana real estate advice. Follow us on Facebook!
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