What Credit Score do You Need to Buy a Kentucky Home?
As a rule of thumb, however, a credit score below 620 will make buying a home very difficult.
A FICO score below 620 is considered sub-prime. In the past there were mortgage companies that specialized in sub-prime mortgages. Because of the challenges in the credit market over the last year or so, however, sub-prime loans have become difficult if not impossible to obtain.
A FICO score between 600 and 620 is considered fair to good credit. But keep in mind, this range of credit scores does not guarantee you will qualify for a mortgage, and if you do qualify, it won’t get you the lowest interest rate possible. Still, to buy a home aim for a score of at least 620, recognizing that other factors weigh in the decision and that some banks may require a higher score.
What credit score do you need to get a low rate mortgage?
It use to be that a score of about 700 would yield the lowest mortgage rates available. Today, the best rates kick in with a FICO score of 740. And interest rates go up significantly as your credit score drops.
Of course, the interest rates change daily, but the above table gives you an idea of the importance of a high score when you apply for a mortgage.
Joel Lobb
Senior Loan Officer
(NMLS#57916)
phone: (502) 905-3708
Fax: (502) 327-9119
kentuckyloan@gmail.com
Company ID #1364 | MB73346
http://mylouisvillekentuckymortgage.com/
.jpg "What Credit Score do You Need to Buy a Kentucky Home?")
