We have partnered with United Credit Education Services to provide clients with credit restoration services.
Your credit score is the most significant factor in your finances affecting your life. Having a higher score saves you money, time, and the stress of financial struggles. Because we want you to succeed, United Credit Education Service works with you to dispute any inaccurate, obsolete, or erroneous accounts on your credit report.
The simple Credit Restoration process can have a massive effect on your family’s financial future and ability to qualify for a mortgage. Lower your interest rates, avoid high late fees, save money, and advance your credit opportunities with United Credit Education Service. According to data from the most recent Origination Insight Report by Ellie Mae, the average FICO® score on secured loans reached 753 in February. As lending standards have stiffened recently, many are concerned about whether their FICO Score is strong enough to qualify for a home loan. While stricter loan standards could be a challenge for some, many buyers may be surprised by the options that are still available for borrowers with lower credit scores.
If your credit score is below 750, it’s easy to see the data above and dread that you may not be able to qualify for a mortgage. However, that’s not always the case. There’s more to preparing for a home loan than just the credit score, and there are still options that allow people with lower credit scores to buy their dream home. Here’s what Experian, a global trailblazer in consumer and business credit reporting, says:
· Federal Housing Administration (FHA) loans: “With a 3.5% down payment, homebuyers may be able to get an FHA loan with a 580 credit score or higher. If you can manage a 10% down payment, though, that minimum goes as low as 500.”
· Conventional loans: “The most popular loan type typically comes with a 620 minimum credit score.”
· S. Department of Agriculture (USDA) loans: “In general, lenders require a minimum credit score of 640 for a USDA loan, though some may go as low as 580.”
· S. Department of Veterans Affairs (VA) loans: “VA loans don’t technically have a minimum credit score, but lenders will typically require between 580 and 620.”
There’s no debate a better credit score will give you more possibilities and better terms when applying for a home loan, especially when lending is tight like it is right now. When planning to buy a home, speaking to a professional about the phases you can take to improve your credit score is essential, so you’re in the best position possible. However, don’t rule yourself out if your score is less than perfect in today’s market is still full of opportunities.
Conclusion
Don’t let assumptions about whether your credit score is strong enough put a premature end to your homeownership goals. Let’s connect today to discuss the best options for you with United Credit Education Services.
