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Purchasing a Home, Credit Scores - July 9, 2009

In Part 2 of our "Purchasing a Home" series we're going to discuss credit score requirements. Mortgages Made Simple logo

The good news is FHA loans don't require much of a credit score at all. However, the major lenders require a 620 credit score. So keep that number in mind. You'll have more options available if your credit score is above 620. On a conventional loan you can also go as low as 620, BUT, it's a big but, your interest rate will be higher if your credit score is lower than 720. So if your credit score has got the blues, think FHA.

Also, if you have a bankruptcy or foreclosure they must be 4 years old. And a short-sale counts as a foreclosure with most lenders.

Collection accounts and charge-offs can sometimes create problems and may need to be paid off if they're not already taken care of.

When it comes to credit it's pretty straight forward. But if you need help reviewing it we're here to help.

Join us in our next "Purchasing a home" series for Appraisals, what's up with those.

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email

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