Common Kentucky Mortgage Myths Busted! My credit score or fico score is too low: Most people’s credit scores are better than they think. According to Ellie Mae, the average conventional loan borrower has a score of 751 and the average government loan (FHA VA, USDA) borrower has a score of 679. Scores typically need to be above 580 to 620 minimum to qualify. I don’t have enough for a down payment: Many people still think you need 20 percent as a down payment. It’s just not true. Depending on the loan type it’s possible to put as little as 0 percent down. FHA 3.5% down , VA, zero down, USDA zero down , and Conforming loans even allow for as little as three percent for a down payment. I have too much debt: Debt-to-income ratio guidelines allow as high as 50 percent in most situations. This is more buying power than anyone would likely need. We don’t suggest borrowers push the max, but this does allow the ability for consumer debt (student loans, ...
