What credit score do you need to qualify for first-time homebuyer programs?
There are several things to consider when it comes to your credit score as a first-time homebuyer. They include:
- First-Time Buyers: Haven't owned a home in the last 3 years.
- Credit Score: Around 640 is usually sufficient but varies by program.
- Conventional Mortgages: This may require a score of around 680.
- Tip: Lower debt and higher scores improve approval odds.
Not a First-Time Buyer?
- You may still qualify for assistance.
- About 4 in 10 programs are open to all buyers.
Credit Evaluation
- Lenders use a tri-merge credit report (which combines data from all three bureaus).
- The middle of the three scores is commonly used.
Visit our first-time homebuyer guide for more information and consult with a licensed mortgage lender for specific rules and requirements. First-time homebuyer programs vary by city, county, or state.
Loans for First-Time Homebuyers
We offer a wide range of loan options for first-time homebuyers, here are a few of the most popular options:
- FHA Loans:
- Ideal for lower credit scores.
- Insured by the Federal Housing Administration.
- Less than 20% down payment.
- USDA Loans:
- For rural areas and areas just outside of city limits.
- No down payment required.
- VA Loans:
- For military members, Veterans, and spouses.
- Lower interest rates, no down payment.
Learn How to Improve Your Credit Score
Improving your credit score can reduce your monthly payments so it’s important to understand how you can make improvements.
- Check credit reports and scores.
- Calculate debt-to-income ratio (aim for <36%).
- Ensure housing costs are under 28% of gross income.
To learn more about becoming a first-time homebuyer visit our step-by-step guide or contact a licensed loan officer.
Stay one step ahead