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

area

Conventional 620 to 640 Buyers seeking a traditional

mortgage

One of the best loan officers in which I know that can help you with all your mortgage needs is Terry Cooper from LoanDepot.

Terry is thorough in explaining what mortgage type will be suiteable for your needs.