Anonymous asked in Business & FinanceRenting & Real Estate · 8 years ago

my credit score is 640 will i qualify for a home loan?

looking for a home loan and my credit score is 640. not sure if i'll get a good rate

4 Answers

  • 8 years ago
    Favorite Answer

    yes. For an FHA or USDA (or VA) you are ok.

  • 8 years ago

    You won't get the best rates.

    Are your credit reports clear of collection agencies that could possibly sue you?

    Any mortgage company will want clear credit reports.

    Do you carry credit card balances?

    Pay them in full each month.

    Wait about 45 to 60 days to see a boost to your score (if you carry card balances).

    Have you have a solid job for 2+ years with tax returns to back it up?

    Do you have the down payment socked away, with emergency savings left over?

    It's not just about a 3 digit number. Your financial health makes up the bigger picture.

  • 8 years ago

    That score is only "Fair." For mortgages these days, lenders generally require a minimum of 700/720. If you already own the home and have sufficient equity for a home equity loan (HEL) or home equity line of credit (HELOC), you might not qualify at all, and certainly will not get a decent rate if a loan is possible.

  • 8 years ago

    Your income, deposit and the purchase price are all very important here. Also, the score is one thing, but the reasons for the drop are another. However, 620 generally qualifies you for FHA.

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