Various Mortgage Types
If you're planning to get a mortgage, be prepared for your credit to come under scrutiny. Lenders use your credit score, along with other details from your financial history, to determine whether you qualify for a loan.
The credit score requirements for a mortgage can vary, depending on the type of loan and lender.
There are four common mortgage types:
•Conventional loans, which are backed by Fannie Mae and Freddie Mac
•FHA loans, or those from the Federal Housing Administration
•USDA loans, which are designated for rural properties and are guaranteed by the U.S. Department of Agriculture.
•VA loans designed for military members and veterans
Loan Type Minimum FICO Credit Score Designed For
FHA 580 with a 3.5% down payment; Low- to moderate-
500 with 10% down income homebuyers
VA No set minimum from the VA; most Veterans buying a home
lenders require at least a 620 credit
score, though some will allow a score
as low as 580
USDA No set minimum from the USDA; but a Qualified buyers purchasing a
score of at least 640 is recommended home in a designated rural
Conventional 620 to 640 Buyers seeking a traditional
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