credit score for home loan?

do you think 635 is a good enough credit score to get a home loan? i have been doing research but different sites have different answers. one said like 600-640 is good enough to get a 100 percent finance and no down payment. another said it wasn't. so now i am here to ask

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  • Bob
    Lv 6
    10 years ago
    Best Answer

    You may be able to get 100% financing with a USDA Rural Housing loan. They will approve a 635 score though there are other credit qualifications besides just the score. There are also income limits based upon your area and they can only be used in cities and towns with populations of 25,000 or less but there are a lot of areas that qualify.

    If you qualify for Veteran's benefits a VA loan is another possibility and that will not be limited to just rural areas.

  • 10 years ago

    Unfortunately, 635 is no longer considered a "good" score. Even 680 is not considered a very good score anymore. 720 is the new 680 for the best rates. That's not to say you can't get a loan, but you're going to find it very difficult, if not impossible to find 100% financing if that is what you're looking for.

    NACA (Neighborhood Assistance Program of America) is a great program to help people with less than perfect credit who need "no down payment assistance". Here's a link for you: https://www.naca.com/members/purchaseStep.jsp

    If you want a simple 8 step program to help you repair your credit, visit: http://www.RepairCreditTrauma.com.

    Hope this helps!

  • 10 years ago

    Even with a 720 score, you would not get 100% financing. Conventional loans require 20% down. FHA loans require 3% (I think). No one is doing 100% financing even if you have scores over 800.

    There are also many other factors more important that your score that mortgage lenders consider: your actual credit reports, stable work history, salary, debt to income ratio, other assets, etc.

    Source(s): BD
  • 4 years ago

    I don' t know where you get the idea that 620 is "average" let alone "wonderful." It's sub-prime and borders on poor. A FICO score below 620 cuts you out of the mortgage market entirely. Those risky loans that contributed to the economic melt-down are a thing of the past. Anything below 725 or so is going to result in higher interest rates and/or larger down payment requirements for a conventional mortgage. You can go as low as 620 on an FHA or VA loan but you still must meet very strict housing cost to income and total debt to income ratios and have enough income to swing the payments. I've been turned down in the past for missing one of those ratios by less than half a percentage point. I know what it's like being in the potty credit wise with a FICO in the mid 500 range and debt up the wazoo. It takes time to dig out. The only thing that you can repair quickly is getting erroneous derogatory information removed. Legitimate derogatory information stays for 7 to 10 years and nothing but time will lessen the impact. The older that derogatory information is, the less impact it will have. It took me 10 years to go from 550 with $50,000 in credit card debt to 750 and no debt. That was 20 years ago and I've kept it between 750 and 800 since then and have kept total unsecured debt to less than 5% of my gross annual income and total debt service (including mortgage) to less than 25% of my gross income.

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  • 10 years ago

    Not likely but might be possible. It really gets down to your credit history. No way are you getting 100% financing with that score though (hardly anyone can get 100% financing right now) and you are probably not going to get a very good interest rate.

  • ?
    Lv 7
    10 years ago

    680 for FHA 750 Conventional. The lower your score the higher the interest rate.

  • 10 years ago

    Higher than 720 is a good score. You will have trouble getting a loan with that score, they will of course look at your history. best of luck.

  • 10 years ago

    When I got my house it was 725 for no money down. good luck on getting a house hope this hepls

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