It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly payments.
A conventional loan requires a credit score of at least 620, but it's ideal to have a score of 740 or above, which could allow you to make a lower down payment, get a more attractive interest rate and save on private mortgage insurance.
FHA Loan with 611 Credit Score
The most common type of loan available to borrowers with a 611 credit score is an FHA loan. FHA loans only require that you have a 500 credit score, so with a 611 FICO, you will definitely meet the credit score requirements.
While you don't need a perfect 850 credit score to get the best mortgage rates, there are general credit score requirements you will need to meet in order to take out a mortgage. Prospective home buyers should aim to have credit scores of 760 or greater to qualify for the best interest rates on mortgages.
FHA loans only require that you have a 500 credit score, so with a 619 FICO, you will definitely meet the credit score requirements. Other FHA loan requirements are that you have at least 2 years of employment, which you will be required to provide 2 years of tax returns, and your 2 most recent pay stubs.
Lenders will usually offer an FHA loan to someone with a credit score as low as 500, as long as they can put down 10%. With a credit score above 580, you could qualify for a down payment as low as 3.5%.
Consequently, when lenders check your FICO credit score, whether based on credit report data from Equifax, Experian, or TransUnion, they will likely use the FICO 8 scoring model. FICO 8 scores range between 300 and 850. A FICO score of at least 700 is considered a good score.
Basically, "credit score" and "FICO® score" are all referring to the same thing. A FICO® score is a type of credit scoring model. While different reporting agencies may weigh factors slightly differently, they are all essentially measuring the same thing.
So a credit score of 640 is on the lower end of the spectrum for many mortgage lenders. It should get you approved, but it's typically not high enough to get the best interest rates on any type of loan. Plus, your credit score is only one piece of the underwriting puzzle.
700 is a good score — and with a little effort, you should be able to find a mortgage lender who will give you a competitive rate and get you into the home you want.
Note that FHA loans can allow credit scores as low as 500. But if your score is below 580, you'd need a 10% down payment to qualify. Borrowers with credit scores above 580 need only 3.5% down. The downside to lower credit is that you'll pay a higher interest rate.
A FICO score of 650 is considered fair—better than poor, but less than good. It falls below the national average FICO® Score of 710, and solidly within the fair score range of 580 to 669.
A 692 FICO® Score is Good, but by raising your score into the Very Good range, you could qualify for lower interest rates and better borrowing terms. A great way to get started is to get your free credit report from Experian and check your credit score to find out the specific factors that impact your score the most.
A 712 FICO® Score is Good, but by raising your score into the Very Good range, you could qualify for lower interest rates and better borrowing terms. A great way to get started is to get your free credit report from Experian and check your credit score to find out the specific factors that impact your score the most.
For example, while a lender may permit you to borrow up to 95% of the property value if you have a 750 credit score, they may restrict you to no more than 80% of the property value if your credit score is 650.
The minimum credit score to qualify for an FHA loan is 580 with a down payment of 3.5 percent. If you can bump up your down payment to at least 10 percent, you can have a credit score as low as 500 and still qualify.
If your credit score is a 647 or higher, and you meet other requirements, you should not have any problem getting a mortgage. Credit scores in the 620-680 range are generally considered fair credit. There are many mortgage lenders that offer loan programs to borrowers with credit scores in the 500s.
The most commonly used FICO Score in the mortgage-lending industry is the FICO Score 5. According to FICO, the majority of lenders pull credit histories from all three credit reporting agencies as they evaluate mortgage applications. Mortgage lenders may also use FICO Score 2 or FICO Score 4 in their decisions as well.
Most consumers have credit scores that fall between 600 and 750. In 2020, the average FICO® Score☉ in the U.S. reached 710—an increase of seven points from the previous year. Higher scores can make creditors more confident that you will repay your future debts as agreed.
The most accurate credit scores are the latest versions of the FICO Score and VantageScore credit-scoring models: FICO Score 8 and VantageScore 3.0. It is important to check a reputable, accurate credit score because there are more than 1,000 different types of credit scores floating around.
"For years, there has been a lot of confusion among consumers over which credit scores matter. While there are many types of credit scores, FICO Scores matter the most because the majority of lenders use these scores to decide whether to approve loan applicants and at what interest rates."
FICO Score 9 (also known as FICO 9 and FICO 9.0) is the latest edition of the widely regarded credit scoring models. It means good things for your credit score, although it is rolling out very slowly.
FICO 9 is similar to FICO 8 but differs when it comes to collections and rent payments. FICO 9 counts medical collections less harshly than other accounts in collections, so a surgery bill in collections will have less of an impact on your credit score than a credit card bill in collections.