What is the absolute minimum Credit Score a person can have to buy a house normally?

My credit is horrible, but I'm cleaning it up. I'm curious as to what is the low cutoff point before a bank will actually talk to you about buying a house? Some personal examples of what others went through would be cool.

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  • 1 decade ago
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    There are lenders out there that don't even look at credit scores. They are purely equity driven. But if you need 100% financing the minimum would be a 620 mid score with 2 years job stability. Look into renting, its much cheaper to rent than own a house in many parts of the nation. Don't bank on any residential appreciation over the next few years, your better off buying lotto tickets with your money. Let me know if you need any further help!

    Source(s): I'm a nationwide mortgage broker and california RE/MAX realtor.
  • Anonymous
    1 decade ago

    I bought a house without a job.

    But, my credit was over 780 and I had over 10% down.

    Lenders work with all kinds of variables when deciding who to issue credit to, so don't just go by a FICO score.

    why not check out the free homebuying workshops offered by www.naca.com? They are a non-profit housing advocacy group, they fund their own mortgages and will work with you to improve your credit. They got their money to lend from suing Fleet Bank for predatory lending practices a few years ago. They won and they use their settlement to fund people trying to break into becoming homeowners. They expect you to get your credit act together and educate yourself so you don't become a victim to predatory lenders. If your credit is lousy, you are more of a target for a bad/predatory loan. Be careful.

  • Anonymous
    1 decade ago

    For buying a house Credit History is much more important than credit score. Often, the lack of credit history is equated with bad credit. You should be aware that lenders will go through your credit report once you apply for loan for buying a house. Therefore you should polish your credit report. Anyway, in order to establish a good credit history and at the same time risen your credit score in a short time do following things:

    1) Close all of your credit cards but one. It reflects in your credit report and it is a very good sign. For instance say that you have 5 credit cards with $1000 credit limit for each. Therefore you are responsible for $5000 of possible debt. But when you close 4 of them, now you are only responsible for $1000 of debt which lowers the level of risk of lending money to you.

    2) If you have any loan, like car loan or any balance on your credit cards, try to pay more than your monthly payment for 6 months or something. I mean say your monthly due on your car loan is $150, try to pay $250 each month. Lenders can see these trends in your credit report and they see that you’re a responsible borrower.

    If you don’t have such loans, I suggest getting a $3000-$4000 loan and paying it off in full in 5-6 months. You might pay $200-$300 of interest but you will save thousands of dollars in your home mortgage and interest rates.

    Also checkout http://www.howtoestablishgoodcredit.com/Credit_Art...

    There are lots of articles there, related to your question, which you can find useful to boost your credit.

  • Anonymous
    1 decade ago

    The absolute minimum is a FICO score of 500. It will however come with a high interest rate a more of a down payment.

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  • 1 decade ago

    Getting a house depends more on your credit history. Many people are able to get financed with a 560 + credit score, but again, with a good credit history.

    If you want to get into a house sooner, you may want to consider creative financing options. Usually land contracts, lease options, etc.. These options can help you pay off a house sooner, while you establish good credit.

  • 1 decade ago

    A few years ago, it used to be a FICO score of 600. Now, given all the problems in the industry (if you've been watching the news on Wall Street), you need at LEAST a FICO score of 700.

    If you want to check your credit report out for free, visit annualcreditreport.com. If you want to know your FICO score for free, contact me. You can't get your FICO score for free from annual credit report.

  • Anonymous
    1 decade ago

    Sub-prime lenders go as low as 620....any less than that a cardboard box is sufficent....but expect higher than normal interest rates.

  • Anonymous
    1 decade ago

    612 and money in the bank you borrowing from

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