Profile picture for Kornegia39

my credit is poor but I would like to own a home. What is an exceptable score to purchase a house?

  • July 13 2010 - US
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Answers (7)

Dear Kornegia39.   Most lenders today want to see at least 650 but that is not to say that there are exceptions to that every single day.   Best thing is to contact a direct lender and ask for a prequalification.   There is no fee and no obligation.  A good one will even help guide you to repairing credit issues so that if you are not ready to buy now, you will be sooner.
Good luck.
If you are in the Atlanta area and would like the name of some good lenders and their contact info, contact me directly.
  • July 13 2010
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A very good site to use to keep track of your credit reports and scores is https://www.annualcreditreport.com  They are authorized by all three major consumer agencies (they claim to be the only site authorized by all three), Equifax, Experian and TransUnion, and are a straight up source for information.  They will link you directly to the three agencies, where you can get in depth information on how your credit works and they can also function as a central source if you create an account with them.

Your credit is crucial to getting good rates on all types of loans, and considering how buyer friendly the real estate market should be for the next couple years, you might wait to buy, improve your credit, and save considerable money in the long run.  Good luck -
  • July 13 2010
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If you have a score of 520 or above I can probably help you.  Contact me at 360-402-4130.
  • July 13 2010
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The majority of lenders in todays market are not  taking applications if your credit is below 620. The best thing you can do is to get in contact with the 3 credit bureaus, (Trans-union, Equifax and Experian) you can get a free report once a year. Look over your report and make sure all the charges are yours, dispute any charges you dont recognize, and pay off the ones you can. Any items that arent yours or you don t recognize the credit bureaus will investigate and the creditor has 30 days to prove the charge or they must remove it. Good Luck.

Tony Rodrigues
USA Real Estate

  • July 13 2010
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Profile picture for Ana Martinez
580 for a few banks, and 620 for most banks.

If your credit is really low, I would first try to isolate the problem and work on correcting it. The better your score, the better the rate. No need to rush IF you can possibly better your score.
  • July 13 2010
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Profile picture for Ilan Goldberg
Some banks are more flexible than others when it comes to credit score and qualifying for a home loan. There are many additional variables that are factored in when purchasing a home aside from credit score i.e- debt to income ratio and taxable income. In today's market I've found many banks that will lend via FHA loans with a 600-620 credit score.
  • July 13 2010
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Profile picture for wetdawgs
If your middle credit score is >620, chances are good you have acceptable credit for an FHA loan.  A few (very few) lenders will go down to 580.

If you would like to own a house, break it down into the steps needed to achieve this goal.   

1.  Understand your credit score and why it is low.  Take actions to bring it up.

2.  Save up a down payment plus money to cover closing costs.

3.  Save up a home maintenance fund so there are no financial ugly surprises in the first couple of years.

4.  Save up an emergency fund to cover a few months in case job loss or medical emergencies slow down the income in your family for a bit.

These steps are quite achievable, but aren't overnight wonders.

Good luck.
  • July 13 2010
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