• Thomas Lawhead

What credit score do I need to buy a home?

LENDERS like to see a credit score better than 620 FICO. When a lender runs your credit score they use the middle of the three scores to determine your credit worthiness. What a borrower wants to have is to be Desktop Underwriter approval or DU approval as we call it. This means that the lender will attach less additions to your final loan approval. Most importantly, it means that you will not have to verify on-time rent payments for the last 12 months. if you are under 620 FICO, you MUST have canceled checks for ALL of the last 12 months rent unless you pay your rent to a property management company. Many renters pay their landlord by cash on the insistence of the landlord. This is probably because the landlords are not including the income on their tax returns. Sadly, it is very common for renters not to have their last 12 months rent checks to present to their lender for obtaining a home mortgage, and thus they become disqualified. if you have a 580 credit score, you can still be approved. First, get pre-qualified. you can also be approved with as low as a 530 credit score with 10% down. feel free to give us a call at 614-486-5626 if you have any questions about qualify for a home loan!


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