What Credit Score is Needed to Buy a House? | This is the MINIMUM Credit Score Needed to Buy a Home!

What credit score do you need to purchase
a house? Guys let’s just jump in. I have Rich Conlon here with me. Rich, what credit score do you need to buy
a house? Basic minimium you should start with is 640. Having said that however, there are programs
out there that will allow below a 640. You can probably classify them as a niche
program or a portfolio product. We at Atlantic Coast Mortgage and credit unions
in the local area also offer those so they come with slightly higher terms but do allow
for less than 640 credit scores. So if I don’t have 640. If I’m at 590. 610. 620. Is this something where I should wait to pay
off some debt or are one of these portfolio programs an option for me? It’s going to depend. With those lower credit scores, a downpayment
of 5 – 10% is going to be required. You will definitely be considering a larger
downpayment. The lower the credit score, the larger the
downpayment can be. It can be up to 30% for one particular product
that we have with a 580 score. It’s one of those things where it’s designed
to help you get into the home if you’re in the early stages of recovery. If a downpayment is not an issue for you,
the portfolio and niche products can be a helpful tool. Again, for any conventional program: VA or
FHA, 640 is going to be a good baseline. 640 with an asterix. So it’s like Barry Bonds. Yeah he’s the king but you got to remember
all the other stuff. 640, but maybe the opportunity if you’re a
little below. So what if hypothetically I’m at 640 and 3
weeks before I’m scheduled to close, I’m no longer at 640. I’m at 600. Does that even matter? Every mortgage lender is required to do a
credit refresh or a credit check the week before closing to ensure if you’re buying
a boat. I actually had a friend who bought a boat. He closed recently and we were just talking
about this – what’s the one thing you don’t do…. You buy a boat. Don’t do that! But somehow he bought a boat, super stoaked
about it, and he just closed on his place recently. And he closed, he made it work. There’s two layers to this. If it’s below the minimium requirement, there’s
a bigger issue; yes. The other is if you meet the minimum requirement
from a program standpoint you’re OK, but, depending on how significant the difference,
typically if it’s bigger than 20 points in your credit score, that can have an affect
on your loan terms. The Fannie and Freddie conventional loan pricing
system is typically in tiers of 20 so if you’re at 690 or 700 rather and you drop below 680,
the lender could very well be reaching out to you letting you know that your rate is
going to be different for the long haul and it’s going to happen before settlement. Most lenders do inform you when going under
contract and issuing disclosures that you should please consult your lender before opening
new lines of credit. Furniture is a big common question. We’re not trying to dissuade you. Definitely reach out to us. We’re not saying you can’t do it. We just want to be mindful of that if things
are tight and there’s going to be a negative impact moving into the home. Nobody wants to buy a $5,000 couch or open
a line of credit at a furniture store and then ultimately have no house to put it in. It’s one of those things to be mindful. We always advise against it but if you’re
in dire need or if you’re considering it, just reach out to your lender. Cool. 640. That’s what you need to know. For Rich and myself, thank you very much for
watching. Create a productive day. Take care.

5 comments on “What Credit Score is Needed to Buy a House? | This is the MINIMUM Credit Score Needed to Buy a Home!”

  1. Matt Leighton says:

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  2. Nomin Evader says:

    Love your videos. I wish u could help me finance house for me

  3. Chasingwaves says:

    Here is a question what can your get with that 640 credit score is the real question what 100,000 2K , 3K,4K ???? That’s the question just a ball park answer is good .

  4. Nehemiah Rodriguez says:

    If I bought couches on a credit line >$7,000 1.5-2 years before home shopping, will it have a negative impact if they are being paid down on time, but there is still a $4,000 balance on the card?

  5. Martina lopez says:

    My name is Alexandra Martina, I live in California. My apartment got flooded some years back and I didn’t have the right rental insurance. There the bill came up to $50000 and I was asked to pay but didn’t have enough money so I agreed on a payment plan but got declined then had an eviction on my credit report. I didn’t realize that I had an eviction on my report until last 3 months while I was trying to buy a house, the realtor told me that my credit score was low(520) and wasn’t qualified for anything. I want to buy a house, I want to buy properties and start a business. I needed help and I found CREDIT STREAMERS here online and visited their website, they are good and kind credit repair team. They pulled my score to 784, deleted the eviction and other negative item on my report, and added good trade lines. I got everything I wanted and even more. Thanks to the entire team. You can visit their website CREDITSTREAMERS COM./ 775 -468-3518{[email protected] . NET} to anyone that needs help with their credit repair

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