Credit Score Requirements for a Kentucky Mortgage Home Loan Approval

# Credit Score Requirements for a Kentucky Mortgage Loan in 2025 – And How to Improve Yours Fast **Meta Title:** Credit Score Requirements for a Kentucky Mortgage Loan | Joel Lobb **Meta Description:** Find out the minimum credit scores needed for FHA, VA, USDA, KHC, and Fannie Mae loans in Kentucky in 2025 — plus proven tips to boost your score before you buy. **URL Slug:** credit-score-requirements-kentucky-mortgage-loan **Primary Keyword:** credit score requirements Kentucky mortgage **Secondary Keywords:** how to improve credit score Kentucky home buyer, Kentucky FHA credit score, KHC credit score requirements, minimum credit score Kentucky mortgage, first time home buyer credit score Kentucky --- If you're planning to buy a home in Kentucky and wondering whether your credit score is good enough — you're asking exactly the right question. Your credit score is one of the most important factors in getting approved for a mortgage, and it also directly affects your interest rate and monthly payment. The good news? You don't need perfect credit to buy a home in Kentucky. Whether you're a first-time homebuyer in Louisville, Lexington, Bowling Green, or anywhere in the Bluegrass State, there are loan programs available with flexible credit requirements — including options with zero down payment. In this guide, Kentucky Mortgage Loan Officer **Joel Lobb** (NMLS #57916) breaks down exactly what credit scores you need for each major loan program in Kentucky, explains what goes into your FICO score, and gives you step-by-step tips to raise your score quickly so you can get approved and into a home sooner. --- ## Minimum Credit Score Requirements by Loan Type in Kentucky (2025) Before you start house hunting, you need to know your number. Here's what lenders typically look for on each major Kentucky mortgage program: ### FHA Loans – Kentucky's Most Popular First-Time Buyer Option The **Federal Housing Administration (FHA) loan** is the go-to program for Kentucky first-time homebuyers with less-than-perfect credit. Here's how the credit score tiers work: - **580+ credit score** → Eligible for the minimum **3.5% down payment** - **500–579 credit score** → May still qualify, but requires a **10% down payment** - **Below 500** → Not eligible for FHA financing FHA loans are especially popular in Kentucky because they allow gift funds for the down payment, accept higher debt-to-income ratios, and are available statewide — in both cities and rural areas. ### VA Loans – Zero Down for Kentucky Veterans If you are a veteran, active-duty military, or surviving spouse, a **VA loan** offers the best terms available — including no down payment and no monthly mortgage insurance. The VA does not set a minimum credit score, but most Kentucky lenders require at least a **580–620 FICO score**. Some lenders may work with scores as low as **500** with strong compensating factors such as low debt ratios or significant residual income. ### USDA / Rural Development Loans – Zero Down in Eligible Kentucky Areas The **USDA Rural Development loan** is one of the best-kept secrets in Kentucky mortgage lending. It requires **zero down payment** and is available to low-to-moderate income buyers in USDA-eligible areas — which covers a large portion of Kentucky, including many suburban communities outside Louisville and Lexington. USDA loans typically require a **640+ credit score** for automated underwriting approval. Scores below 640 may require manual underwriting with additional documentation. ### KHC Loans – Kentucky Housing Corporation Down Payment Assistance **Kentucky Housing Corporation (KHC)** loans are specifically designed for Kentucky first-time homebuyers and offer below-market interest rates plus down payment assistance programs. - **Minimum credit score: 620** for most KHC programs - KHC down payment assistance is available as a loan or grant — currently up to several thousand dollars — to help with your down payment and closing costs - KHC programs can be paired with FHA, VA, USDA, or Conventional financing ### Conventional / Fannie Mae Loans Conventional loans backed by **Fannie Mae** offer excellent terms for buyers with stronger credit: - **Minimum credit score: 620** for Conventional loan approval - **Score of 740+** typically qualifies you for the best interest rates available - Fannie Mae's **HomeReady** program allows as little as **3% down** for income-eligible buyers --- ## Quick Reference: Kentucky Mortgage Credit Score Chart | Loan Program | Minimum Credit Score | Down Payment | |---|---|---| | FHA | 580 (500 with 10% down) | 3.5% | | VA | 580–620 (varies by lender) | 0% | | USDA Rural Development | 640 | 0% | | KHC (Kentucky Housing) | 620 | Down Payment Assistance Available | | Fannie Mae Conventional | 620 | 3–5% | | Fannie Mae HomeReady | 620 | 3% | --- ## Why Your Credit Score Matters Beyond Just Getting Approved Your credit score doesn't just determine whether you get approved — it determines the **interest rate you pay for the life of your loan**. Even a 20-point difference in your score can mean hundreds of dollars per year in interest. For example, on a $200,000 Kentucky mortgage: - A borrower with a **760 score** might qualify for a rate of 6.5%, resulting in a payment of approximately **$1,264/month** - A borrower with a **640 score** might be offered 7.5%, putting the payment at approximately **$1,398/month** That's over **$1,600 per year** in extra interest — or more than **$48,000 over the life of a 30-year loan** — simply due to a 120-point difference in credit scores. **This is why taking even 60–90 days to improve your score before applying can be one of the most financially impactful decisions you make.** --- ## What Makes Up Your FICO Credit Score? Understanding the five components of your FICO score is the first step to improving it. Here's how each factor is weighted: 1. **Payment History (35%)** — The most important factor. Do you pay your bills on time? Even one 30-day late payment can drop your score significantly. 2. **Amounts Owed / Credit Utilization (30%)** — How much of your available credit are you using? Keeping balances below 30% of your credit limit (and ideally below 10%) has a major positive impact. 3. **Length of Credit History (15%)** — How long have your accounts been open? Older accounts with good history help your score. Avoid closing old credit cards before applying for a mortgage. 4. **Credit Mix (10%)** — Having a mix of account types (credit cards, auto loans, student loans) shows lenders you can manage different types of debt responsibly. 5. **New Credit / Hard Inquiries (10%)** — Applying for multiple new credit accounts in a short period can temporarily lower your score. Avoid opening new credit cards or financing furniture in the months before applying for a mortgage. --- ## 10 Proven Ways to Improve Your Credit Score Before Buying a Kentucky Home If your score isn't quite where it needs to be, don't get discouraged. Many Kentucky homebuyers have raised their scores by 20 to 100+ points in just 3 to 6 months by following these steps: ### 1. Pull Your Free Credit Reports and Dispute Any Errors Get your free reports from all three bureaus — **Equifax, Experian, and TransUnion** — at [AnnualCreditReport.com](https://www.annualcreditreport.com). Look for: - Accounts that don't belong to you - Late payments reported incorrectly - Duplicate collection accounts - Accounts listed as open that you've paid off Disputing and removing errors is one of the fastest ways to raise your score, sometimes resulting in a 20–50 point increase. ### 2. Pay Down Credit Card Balances Your **credit utilization ratio** — how much of your available credit you're using — accounts for 30% of your score. If you have a credit card with a $5,000 limit and a $4,000 balance, your utilization is 80%, which severely hurts your score. Goal: Get each card's utilization **below 30%**, ideally below 10%. ### 3. Never Miss a Payment — Set Up Autopay Since payment history is 35% of your score, a single missed payment can cost you 50–100 points. Set up autopay for at least the minimum payment on all accounts so you never accidentally miss a due date. ### 4. Don't Close Old Credit Card Accounts It might seem smart to close cards you don't use, but doing so shortens your credit history and increases your utilization ratio. Both hurt your score. Keep old accounts open — just put a small recurring charge on them to keep them active. ### 5. Become an Authorized User on Someone Else's Account If a family member or trusted friend has a credit card with a long history and low utilization, ask them to add you as an **authorized user**. Their positive history can appear on your credit report and boost your score — even if you never use the card. ### 6. Address Collection Accounts Strategically Having a collection account on your report doesn't always mean you need to pay it off to qualify for a mortgage — it depends on the loan type. However, **medical collections are now treated differently** by most mortgage underwriting systems and may have less impact on your qualifying score. Talk to your loan officer before paying off collections, as it can sometimes temporarily lower your score. ### 7. Avoid Applying for New Credit Before Your Mortgage Every time you apply for a credit card, car loan, or store financing, the lender does a **hard inquiry** on your credit, which can drop your score by 5–10 points temporarily. Avoid new credit applications for at least 6 months before applying for a mortgage. ### 8. Use a Secured Credit Card to Build Credit If you have limited credit history or are rebuilding after problems, a **secured credit card** (where you deposit money as collateral) can be a powerful tool. Use it for small purchases and pay it off in full each month. After 6–12 months of on-time payments, you'll see your score climb. ### 9. Keep Accounts Open During the Mortgage Process Once you've been pre-approved and are under contract on a home, do not open or close any accounts. Your lender will pull your credit again before closing, and changes to your profile can delay or derail your approval. ### 10. Ask for a Rapid Rescore Through Your Lender If you've paid down a balance or had an error removed, ask your Kentucky mortgage loan officer about a **Rapid Rescore**. This is a service that can update your credit report and recalculate your score within 3–5 business days — much faster than waiting for the bureaus to update naturally. This can be a game-changer if you're close to a qualifying score threshold. --- ## Kentucky-Specific Credit Tips: What I've Seen Working With 1,300+ Kentucky Families After helping more than 1,300 Kentucky families buy or refinance their homes over 20+ years, here's what I've found works best for buyers in our state: **Take advantage of KHC down payment assistance.** Kentucky Housing Corporation programs help buyers who are close to qualifying get across the finish line. If your score is at or above 620, we may be able to pair a KHC down payment grant with an FHA or Conventional loan and get you into a home with very little out of pocket. **Don't assume you need to wait.** Many buyers come to me thinking they need a year or more to fix their credit. In many cases, two to three targeted moves — disputing an error, paying down one card, and removing an old collection — can get a buyer from a 580 to a 620 in 60 days. **Get pre-qualified before you're "ready."** I offer free same-day pre-qualifications. Even if your score isn't where it needs to be yet, I can create a personalized credit improvement roadmap specifically for your situation. No cost, no pressure, no obligation. --- ## Frequently Asked Questions: Credit Scores and Kentucky Mortgage Loans **What is the minimum credit score to buy a house in Kentucky?** It depends on the loan program. FHA loans allow scores as low as 500 (with 10% down) or 580 (with 3.5% down). VA and USDA loans require 580–640 depending on the lender. KHC and Conventional loans typically require a 620 minimum. **Can I get a Kentucky mortgage with a 580 credit score?** Yes. A 580 FICO score qualifies you for an FHA loan with 3.5% down. You may also qualify for a VA loan (if eligible) with a 580 score through certain lenders. KHC and USDA loans typically require a 620 minimum. **How long does it take to improve a credit score?** Small improvements — like paying down a credit card balance or having an error removed — can show results in 30 to 60 days. More significant rebuilding after bankruptcy or foreclosure can take 1 to 3 years. **Does checking my own credit score hurt it?** No. When you check your own credit (a "soft inquiry"), it does not affect your score. Only "hard inquiries" from lenders when you apply for credit can temporarily lower your score. **What credit score do I need for a USDA loan in Kentucky?** Most USDA lenders in Kentucky require a **640 credit score** for automated underwriting approval. Scores between 580 and 639 may be considered through manual underwriting with compensating factors. **What credit score do I need for a KHC down payment assistance loan?** KHC requires a minimum **620 credit score** for most of its loan programs and down payment assistance options. --- ## Ready to Find Out Where You Stand? Get a Free Same-Day Pre-Qualification You don't have to figure this out alone. Whether your credit is strong, a work in progress, or you're not sure where you stand — I'm here to help. I've worked with Kentucky buyers across the credit spectrum and can tell you exactly what you qualify for today and what steps will get you to your goal faster. **Joel Lobb — Kentucky Mortgage Loan Officer** 📞 **Call or Text:** [502-905-3708](tel:5029053708) 📧 **Email:** [kentuckyloan@gmail.com](mailto:kentuckyloan@gmail.com) 🌐 **Apply Online:** [www.mylouisvillekentuckymortgage.com](https://www.mylouisvillekentuckymortgage.com) NMLS #57916 | Company NMLS #1738461 *Licensed in Kentucky Only | Equal Housing Lender* *This website is not affiliated with or endorsed by FHA, VA, USDA, KHC, or any government agency. All loan approvals are subject to underwriting guidelines. Not all borrowers will qualify.* --- *Tags: credit score Kentucky mortgage, FHA credit score Kentucky, KHC credit score requirements, improve credit score Kentucky home buyer, Kentucky first time home buyer credit score, minimum credit score Kentucky mortgage loan, USDA credit score Kentucky, VA loan credit score Kentucky, Louisville KY mortgage credit requirements*

Different Types of Kentucky Home Loans

Kentucky First Time Home Buyer Programs 

 

 

 

 

Conventional Loan

 

• At least 3%-5% down

• Closing costs will vary on which rate you choose and the lender. Typically the higher the rate, the lesser closing costs due to the lender giving you a lender credit back at closing for over par pricing. Also, called a no-closing costs option. You have to weigh the pros and cons to see if it makes sense to forgo the lower rate and lower monthly payment for the higher rate and less closing costs.

Fico scores needed start at 620, but most conventional lenders will want a higher score to qualify for the 3-5% minimum down payment requirements Most buyers using this loan have high credit scores (over 720) and at least 5% down.

The rates are a little higher compared to FHA, VA, or USDA loan but the mortgage insurance is not for life of loan and can be rolled off when you reach 80% equity position in home.

Conventional loans require 4-7 years removed from Bankruptcy and foreclosure.

 

 

Kentucky USDA Rural Housing Program

 

If you meet income eligibility requirements and are looking to settle in a rural area, you might qualify for the KY USDA Rural Housing program. The program guarantees qualifying loans, reducing lenders’ risk and encouraging them to offer buyers 100% loans. That means Kentucky home buyers don’t have to put any money down, and even the “upfront fee” (a closing cost for this type of loan) can be rolled into the financing.

Fico scores usually wanted for this program center around 620 range, with most lenders wanting a 640 score so they can obtain an automated approval through GUS. GUS stands for the Guaranteed Underwriting system, and it will dictate your max loan pre-approval based on your income, credit scores, debt to income ratio and assets.

They also allow for a manual underwrite, which states that the max house payment ratios are set at 29% and 41% respectively of your income.

They loan requires no down payment, and the current mortgage insurance is 1% upfront, called a funding fee, and .35% annually for the monthly mi payment. Since they recently reduced their mi requirements, USDA is one of the best options out there for home buyers looking to buy in an rural area.

A rural area typically will be any area outside the major cities of Louisville, Lexington, Paducah, Bowling Green, Richmond, Frankfort, and parts of Northern  Kentucky .

There is a map link below to see the qualifying areas.

There is also a max household income limits with most cutoff starting at $109000 for a family of four, and up to $146000 for a family of five or more.

USDA requires 3 years removed from bankruptcy and foreclosure.

There is no max USDA loan limit.

 

Kentucky FHA Loan

 

FHA loans are good for home buyers with lower credit scores and no much down, or with down payment assistance grants. FHA will allow for grants, gifts, for their 3.5% minimum investment and will go down to a 580 credit score.

The current mortgage insurance requirements are kind of steep when compared to USDA, VA , but the rates are usually good so it can counteracts the high mi premiums. As I tell borrowers, you will not have the loan for 30 years, so don’t worry too much about the mi premiums.

The mi premiums are for life of loan like USDA.

FHA requires 2 years removed from bankruptcy and 3 years removed from foreclosure.

Maximum FHA loan limits in Kentucky are set around $498,000.00 and below.

 

Kentucky VA Loan

 

VA loans are for veterans and active duty military personnel. The loan requires no down payment and no monthly mi premiums, saving you on the monthly payment. It does have an funding fee like USDA, but it is higher starting at 2% for first time use, and 3% for second time use. The funding fee is financed into the loan, so it is not something you have to pay upfront out of pocket.

VA loans can be made anywhere, unlike the USDA restrictions, and there is no income household limit and the no maximum loan limits in Kentucky

Most VA lenders I work with will want a 620 credit score though I am setup with lenders that will go down to a 560 credit score if I can get it approved.

VA says on paper no minimum fico score but very hard to get approved with secondary market lenders currently.

VA requires 2 years removed from bankruptcy or foreclosure.

 

 

 

Kentucky Down Payment Assistance

 

This type of loan is administered  by KHC in the state of Kentucky. They typically have $10,000 down payment assistance year around, that is in the form of a second mortgage that you pay back over 10 years.

 

Sometimes they will come to market with other down payment assistance and lower market rates to benefit lower income households with not a lot of money for down payment.

 

KHC offers FHA, VA, USDA, and Conventional loans with their minimum credit scores being set at 620 for all programs. The conventional loan requirements at 660

Joel Lobb  Mortgage Loan Officer

American Mortgage Solutions, Inc.
10602 Timberwood Circle
Louisville, KY 40223
Company NMLS ID #1364

Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com

http://www.mylouisvillekentuckymortgage.com/

 

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Common Kentucky Mortgage Myths Busted!

1. 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.
   
   
   
2. 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.
3. 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, car loans, credit cards) to not prevent home ownership.
4. The loan process is long and terrible: It certainly can be if you’re working with the wrong bank. A great company can close loans in less than 30 days without constantly nagging you..
5. I’ll get denied before I close: If you work with the right company, you won’t. We hear horror stories about this happening, and it’s because other companies do pre-qualifications versus pre-approvals. There is a huge difference. Pre-approvals identify any “gotchas” while pre-qualifications don’t

We understand the perceptions associated with getting a mortgage, and we don’t discount these concerns at all. However, your level of stress can either be eliminated or escalated depending on which company you work with.

--

Joel Lobb
Mortgage Loan Officer

Individual NMLS ID #57916

American Mortgage Solutions, Inc.

10602 Timberwood Circle 

Louisville, KY 40223

Company NMLS ID #1364

click here for directions to our office

Text/call:      502-905-3708

fax:            502-327-9119
email:          kentuckyloan@gmail.com

https://www.mylouisvillekentuckymortgage.com/

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Score Requirement on Kentucky FHA Loans for people with bad credit

Lowers Minimum Credit Score Requirement on Kentucky FHA Loans

Kentucky FHA Home loan programs for people with bad credit

FHA loans are designed to make housing more affordable with lower down payment requirements than conventional loans on purchases and less home equity requirements on refinances.  Less stringent qualification guidelines and the security of a government-insured loan makes FHA a popular choice for consumers.

Kentucky FHA Loans with 580 Credit scores and – Low Down Payment – 3.5% which can be gifted from relatives or borrowed off one's retirement account. If your scores is between 500-579, 10% down needed for home loan and subject to underwriting approval. 

• Low down payment
• 500 minimum credit score from 10% down, to 580 above credit score with 3.5% down payment
• Can be used with Grants for Down payment through Eligible Sources
• FHA  max loan – $336,750 in the State of Kentucky
• FHA approved condos eligible
• Entire Down payment can be a gift, a down payment assistance program or grant funds
• Seller can pay 6% of purchase price toward closing costs

Quick guide to checking your credit score for Kentucky FHA loans

If you’re just starting to shop for home mortgages, it pays to know if banks think you have bad credit or not. Here’s how FICO, the main credit score provider in the U.S., breaks down credit scores:

• 800-plus: Exceptional
• 740-799: Very good
• 670-739: Good
• 580-699: Fair
• 579 and lower: Poor

Kentucky FHA loans

Kentucky FHA Loan Details
Credit score required	500, but banks have minimum underwriting standards
Down payment required	Credit score between 500-579: 10 percent Credit score above 580: 3.5 percent
Upfront financing fee	1.75 percent, which can be financed
Mortgage insurance	0.45 to .85 percent
Mortgage limits	Generally, $336,766 for single-family units, but it varies by location and you should check the limits in your area
Fine print	Mortgage insurance premiums are paid for the life of the loan, except when putting 10 percent or more down. If your down payment is less than 20 percent but 10 percent or more, you must have mortgage insurance for 11 years.

Quick take

If you have bad credit, an Kentucky FHA loan offers a more accessible mortgage. While credit standards vary by lender, you may qualify for the Kentucky FHA loan with a credit score as low as 500. With a credit score above the 580 threshold, you may qualify for the 3.5 percent down payment.

Unfortunately, an Kentucky  FHA loan can be expensive because of mortgage insurance fees. In addition to paying ongoing mortgage premiums for the life of the loan, you’ll have to pay a 1.75 per

Pros: 3.5 percent down payments (for those above the 580 credit-score mark) Credit scores as low a 500 Can buy up to four units  Cons: 1.75 percent upfront mortgage premium Ongoing mortgage insurance for life of loan at .85% and .80%  Smaller loan limits $314,000 in Kentucky  Text/call:      502-905-3708 fax:            502-327-9119 email:          kentuckyloan@gmail.com Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916 http://www.nmlsconsumeraccess.org/

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👀👀👀❗️👇👇👇

With dozens of variations of FICO credit scores, which FICO scores do mortgage lenders use? We have the answer, along with how to check your credit score.

As I’ve mentioned before, I’ve been on a refinancing binge. My wife and I have refinanced our home twice in the last 12 months, and my business partner and I are doing the same with three rental properties. With mortgage rates at an all time low, these deals were just too good to pass up. And this got me to thinking–which credit scores do mortgage lenders use to qualify people for a mortgage?

It’s an important question, as your credit score determines your mortgage rates or if you even qualify for a loan. While it’s common knowledge that mortgage lenders use FICO scores, most people with a credit history have three FICO scores, one from each of the three national credit bureaus (Experian, Equifax, and TransUnion). Do lenders average the three scores, or take some other approach? And what happens when two people buy a home together? Do lenders average their scores together?

So I did some research on the following questions:

• Which FICO formula (there’s more than one, unfortunately) do mortgage companies use?
• For a single applicant, which of up to three FICO scores will be considered?
• For spouses, significant others, or business partners, how do lenders evaluate credit worthiness?
• And finally, what if an applicant doesn’t have FICO scores from all three credit bureaus?

Since most loans are sold to either Freddie Mac or Fannie Mae, I focused on the requirements for these types of loans.

Which FICO Score is Used for Mortgages

Most lenders determine a borrower’s creditworthiness based on FICO® scores, a Credit Score developed by Fair Isaac Corporation (FICO™). This score tells the lender what type of credit risk you are and what your interest rate should be to reflect that risk. FICO scores have different names at each of the three major United States credit reporting companies. And there are different versions of the FICO formula. Here are the specific versions of the FICO formula used by mortgage lenders:

• Equifax Beacon 5.0
• Experian/Fair Isaac Risk Model v2
• TransUnion FICO Risk Score 04

If you want to dig into the regulations for Freddie Mac and Fannie Mae to see the source of this information, you can do so here and here. But be warned, it’s like trying to drink water from a fire hose.

Lenders have identified a strong correlation between Mortgage performance and FICO Bureau scores (FICO score). FICO scores range from 300 to 850. The lower the FICO score, the greater the risk of default.

Which Score Gets Used?

Since most people have three FICO scores, one from each credit bureau, how do lenders choose which one to use?

For a FICO score to be considered “usable”, it must be based on adequate, concrete information. If there is too little information, or if the information is inaccurate, the FICO score may be deemed unusable for the mortgage underwriting process. Once the underwriter has determined if a score is usable or not, here’s how they decide which score(s) to use for an individual borrower:

• If all three scores are different, they use the middle score
• If two of the scores are the same, they use that score, regardless of whether the two repeated scores are higher or lower than the third score

If it helps to visualize this information:

Identifying the Underwriting Score
Example	Score 1	Score 2	Score 3	Underwriting Score
Borrower 1	680	700	720	700
Borrower 2	640	660	640	640
Borrower 3	640	660	660	660

Which Scores Are Used with Two Applicants

If there is more than one applicant, then the scores to be used for each individual are calculated as described above. Once the scores for each applicant are determined, the mortgage lender uses the lower of the two credit scores.

What If No Score is Available

In some situations, an applicant may not have a usable FICO score from one of the three credit bureaus. In that case, the mortgage lender will simply use the lower of the two scores that are available. And if two scores are not usable, they will use the one remaining score.

And since you may be wondering, if a mortgage applicant has no usable FICO scores, generally they won’t qualify for a mortgage. I say generally because there are exceptions. If you fall into this category, contact a mortgage broker to see what options you have.

Obtaining FICO Scores

If you are looking to buy or refinance your mortgage, how do you get a glimpse of your credit scores before applying? Well, one option would be to get your official FICO score from myFICO.

There are a number of ways to get your free credit score, which is where I’d start. They’re not perfect, but in my experience are pretty close.

Joel LobbMortgage Loan Officer

Individual NMLS ID #57916

American Mortgage Solutions, Inc.

10602 Timberwood Circle 

Louisville, KY 40223

Company NMLS ID #1364

click here for directions to our office

Text/call:      502-905-3708

fax:            502-327-9119
email:          kentuckyloan@gmail.com

https://www.mylouisvillekentuckymortgage.com/