Credit Scores Needed for a Louisville Kentucky FHA, KHC, VA, USDA, and Conventional mortgage Loan

Credit Scores Louisville Kentucky FHA KHC VA Conventional mortgage

Louisville, Ky Mortgage Lenders: Credit Scores FHA Loans Louisville Kentucky KHC First Time Home Buyer Credit ScoreLouisville, Ky Mortgage Lenders: Credit Scores FHA Loans Louisville Kentucky KHC First Time Home Buyer Credit Score

What Credit Score do You Need to qualify for a FHA VA KHC Kentucky Mortgage Louisville Kentucky

September 7, 2010Louisville Kentucky MortgageEdit1 comment3 Votes

What Credit Score do You Need to Buy a Home?

by DR on FEBRUARY 8, 2010

When it comes to mortgages and credit scores, there are two really important questions to ask:

–What credit score do I need to qualify for a mortgage?

–What credit score do I need to get the lowest interest rate on a mortgage?

These different but related questions are important if you are looking to buy a home. And the second question is particularly important. With a high FICO score, you can literally save tens of thousands of dollars in interest over the life of a home loan. So let’s take a look at both questions. And if you don’t know you score, be sure to get you free credit score.

What credit score do you need to qualify for a mortgage?

The first thing to keep in mind is that qualifying for a mortgage involves a lot more than just a credit score. While your FICO score is a very important ingredient, it is just one factor. Lenders also look at your income and level of debt, among other things.

As a rule of thumb, however, a credit score below 620 will make buying a home very difficult. A FICO score below 620 is considered sub-prime. In the past there were mortgage companies that specialized in sub-prime mortgages. Because of the challenges in the credit market over the last year or so, however, sub-prime loans have become difficult if not impossible to obtain.

A FICO score between 620 and 650 is considered fair to good credit. But keep in mind, this range of credit scores does not guarantee you will qualify for a mortgage, and if you do qualify, it won’t get you the lowest interest rate possible. Still, to buy a home aim for a score of at least 620, recognizing that other factors weigh in the decision and that some banks may require a higher score.

What credit score do you need to get a low rate mortgage?

It use to be that a score of about 720 would yield the lowest mortgage rates available. Today, the best rates kick in with a FICO score of 760. And interest rates go up significantly as your credit score drops. To give you an idea, the following table shows current rates by credit score and calculates a monthly principal and interest payment based on a $300,000 loan:

FICO Score & 30-year Fixed Rate Mortgage

FICO Score APR Monthly Payment

760-850 4.643% $1,546

700-759 4.865% $1,586

680-699 5.042% $1,618

660-679 5.256% $1,658

640-659 5.686% $1,739

620-639 6.232% $1,844

Of course, the interest rates change daily, but the above table gives you an idea of the importance of a high score when you apply for a mortgage.

Contact me today and I will pull your credit for free. 502-905-3708 or email me at

Posted by kentuckyloan at 12:41 PM Email This BlogThis! Share to Twitter Share to Facebook Share to Google Buzz

Labels: Credit Score First Time Home Buyer Louisville Kentucky KHC, FHA Loans, FHA Loans Kentucky Housing First time home buyer
Louisville, Ky Mortgage Lenders: Credit Scores FHA Loans Louisville Kentucky KHC First Time Home Buyer Credit Score

credit repair – – American Mortgage Solutions Mail// // <![CDATA[
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How to Rebuild Your Credit
Tips for Raising Your Credit Score
• Pay your bills on time
• If you have missed payments, get current and stay current
• Be aware that paying off a collection account will not remove it from your credit report
• If you are having trouble paying your bills, contact your creditors or see a legitimate credit counselor
• Keep balances low on credit cards and other revolving credit
• Do not have too many credit cards and do not use them maximum credit limit on any of them
• Pay off debt rather than moving it around
• Don’t close unused credit cards as a short-term strategy to raise your score
• Don’t open a number of new credit cards that you don’t need just to increase your available credit
• If you have been managing credit for a short time, don’t open a lot of new accounts too rapidly
• Do your rate shopping for a given loan within a focused period of time
• It is OK to request and check your own credit report
• Apply for and open new credit accounts only as needed
• Have credit cards – but manage them responsibly
• Closing an account doesn’t make it go away
Building a Non-traditional Credit History
If you’d rather not get a credit card or loan, you can create a “nontraditional credit history” instead

Joel Lobb
Senior  Loan Officer
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
 Fax:     (502) 327-9119
 Company ID #1364 | MB73346

Yes that’s right, 620  is the magic credit score for getting a mortgage loan!

If you are looking any other loan program ie non conventional meaning an FHA loan, a USDA mortgage, a VA mortgage or even Home Path Financing you need to have a least a credit score of 620.

A rapid rescore can fix your credit score in a hurry


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