What is the minimum Credit Score requirement to purchase a home?

I am working on rebuilding my credit, and believe I can reach 600 in the next couple of months. I%26#039;m looking at possibly buying a nice starter home, and there are many in my area in the $50,000-$60,000 price range that I could easily afford. I%26#039;d be able to get the 20% down that is usually desired. I%26#039;m gainfully employed, making about 50k/year.

So what is the minimum score I should work for before even thinking about talking to a Real Estate Agent?

What is the minimum Credit Score requirement to purchase a home?

Obviously the higher your score, the lower the rate of interest you can obtain. According to the My Fico website, you are looking at an interest rate of 9.249% with a credit score of 580-619. If you score goes up to 620-659, then the rate decreases to 7.08%. So I wouldn%26#039;t talk to a lender until you get your score up to 620.

The rate keeps going down incrementally the higher your score - those with near perfect credit can get a rate of 5.764%.

I%26#039;m curious about your statement about being able to %26quot;get the 20% down%26quot;. How are you going to get the 20% down? The source of those funds is important to the lender. Basically you can%26#039;t borrow that money from anyone. If a family member is going to give you that money, they will have to sign a statement indicating that the money is not a loan and will not have to be paid back.

What is the minimum Credit Score requirement to purchase a home?

There is no one answer. Talk to a lender first to see what you will qualify for. Different lenders have different underwriting requirements.

What is the minimum Credit Score requirement to purchase a home?

First thing, you should speak with a mortgage broker before you speak with a real estate agent. Get pre-approved and know what you can actually afford before you start getting your appetite wet on all the stuff you can%26#039;t.

With a 600 credit score and 20% down you won%26#039;t have a problem finding mortgage financing, assuming you fit the other criteria, such as income and debt ratio to name just a couple.