There are many misconceptions about the credit score needed to buy a house. Recently, it was reported that24%of renters believe they need a 780-800 credit score to be considered for a mortgage. The reality is they are misinformed!
Only 25% of the Americans have a FICO® Score between 740 and 800. Here is the breakdown according toExperian:
16% Very Poor (300-579)
18% Fair (580-669)
21% Good (670-739)
25% Very Good (740-799)
20% Exceptional (800-850)
Randy Hopper,Senior Vice PresidentofMortgage LendingforNavy Federal Credit Unionsaid,
“Just because you have a low credit score doesn’t mean you can’t purchase a home. There are a lot of options out there for consumers with low FICO® scores,”
There are many programs available with low or no credit score requirement. TheFederal Housing Administration(FHA) now requires a minimum FICO® score of580if you want to qualify for the low down payment advantage. TheUS Department of Agriculture(USDA) does not set a minimum credit score requirement, but most lenders require a score of at least640.Veterans Affairs(VA) loans haveno credit scorerequirement.
As you can see, none of them are above 700!
It is true that the average FICO® score for all closed loans in January was 726, but there are plenty of people taking advantage of the low credit score requirements. Here is the average FICO® Score ofclosed FHA Loanssince April 2012 according toEllie Mae:
As you can see, that number has been dropping for the last seven years. As a matter of fact, the average FHA Purchase FICO® Score reported in January 2019 was 675!
One of the challenges is that Americans are unsure about their credit score. They just assume that it is too low to qualify and do not double check.Credit.comconfirmed that only57%of individuals sought out their credit score at least once last year.
“Since October 2009, the average year-over-yearFICO®Score has steadily and consistently increased, from a low of 686 in 2009 to the latest high of 704 as of 2018.”
Here is the increase in the average US FICO® Score over the same period of time as the graph earlier.
At least 84% of Americans have a score that will allow them to buy a house. If you are unsure what your score is or would like to improve your score in order to become a homeowner, let’s get together to help you set a path to reach your dream!
Author:Lance Whipple PA Phone: 407-494-6030 Dated: March 20th 2019 Views: 263 About Lance: Lance is a Retired Air Force Officer and skip-generation real estate agent -- his grandparents ran a...
View our latest blog posts in your RSS reader. Click here to access.
EXIT Realty Champions', Champions Gate Real Estate Office, by Reunion Resort Orlando, is a full service Real Estate Brokerage Office in Champions Gate, Davenport 33896, next to Reunion Resort in 34747. Search for homes for sale with our Realtors, local experts in Champions Gate, Reunion Resort, Kissimmee and Davenport FL. This being the main area for resort vacation homes that can be rented out to meet the Disney World Orlando>, Universal Studios and other theme park market.
Alternatively, if you are looking for a new place to live, Our Realtors can help you find the perfect home in the Orlando, Kissimmee, Davenport, Clermont area known as the Four Corners, where Osceola, Lake, Orange and Polk Counties come together, Next to Disney and the Theme Parks.
EXIT Realty Champions' Realtors in Champions Gate, have a cutting edge Digital Marketing Strategy to help you sell your home for top dollar available in today's demanding market.
Rest assured that EXIT Realty Champions will Champion your housing needs, whether buying or selling one of the biggest investments you have, your home.
Can I Afford the House I want?One mistake young homeowners make is ove
"FOREIGN NATIONAL BUYERS
Scott was very professional, organized the purchase of both my homes from overseas, I was kept updated and involved, but without the usual hassles I have previously experienced in dealing with builders