What credit score do you need for a home loan?
by 
The Curious Bag
ANSWERS: 1
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The credit score requirement for a mortgage varies based upon the mortgage type. Government loans, such as VA, USDA and FHA loans have lower credit score requirements than conventional mortgages.
Significance
A credit score is the numerical representation of a borrower's credit history. The higher the credit score, there is less risk that the borrower will default.
Function
Credit score requirements give lenders a basis for qualifying a borrower for a mortgage.
Types
Government mortgages, such as VA, FHA and USDA, have programs that allow borrowers with scores as low as 580 to procure a mortgage. Conventional mortgages have a floor of 620.
Considerations
The credit score is not the only indicator of a borrower's ability to repay the loan. A borrower's debt to income ratio is another indicator.
Misconceptions
A low credit score does not mean a borrower will never be able to own a home. Credit repair can help a borrower become eligible in the future.
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