You are ready to apply for a home loan. However, you do not know exactly what home loan credit score you will need. Sorry, but the score will vary from one mortgage company to the next. There are, nevertheless, come general guidelines you should be aware of and this article will help you to know them.According to Bankrate.com, FICO mortgage loan credit scores “run from 300 to 850. The vast majority of people will have scores between 600 and 800. A score of 720 or higher will get you the most favorable interest rates on a mortgage, according to data from Fair Isaac Corp., a California-based company that developed the first credit score as well as the FICO score.”The March 26, 2007 edition of Newsweek Magazine had an article entitled “Buying With Bad Credit.” Jennifer Orodonez noted that “Americans whose credit score is between 500 and 599 (read: not so good) and who not long ago might have qualified” for some types of loans are in the present economic downturn almost certain not to be able to secure credit.At its website, the FHA, one of the nation’s largest mortgage providers, downplays the significance of credit scores and instead lists the following “essential requirements” for a house mortgage:o Steady employment history, at least two years with the same employer.
o Consistent or increasing income over the past two years.
o Credit report should be in good standing with less than two thirty day late payments in the past two years.
o Any bankruptcy on record must be at least two years old with good credit for the two consecutive years.
o Any foreclosure must be at least three years old with good credit for the past three years.
o Mortgage payment qualified for must be approximately 30 percent of your total monthly gross income.
o If you can answer YES to these statements you should have no problem qualifying for an FHA home mortgage loan.There are also programs for first time home buyers and programs to provide down payment assistance. Some counties and cities across the United States have their own programs to help people purchase houses for their main residence. If home ownership is your goal, a home loan credit score is just one consideration among many.
Home Loan Credit Score