Kanchana Boyagadda 3 Questions 1 Answer 1 Best Answer 96 Points View Profile 21 Kanchana Boyagadda Asked: June 7, 20212021-06-07T03:11:12+00:00 2021-06-07T03:11:12+00:00In: Finance Topics What is the minimum credit score required to get a mortgage loan? 21 What is the minimum credit score required to get a mortgage loan? credit scoremortgage loan Share Facebook Related Questions What are the downsides to doing a reverse home mortgage? What is a good home insurance company? How will self-driving cars affect the auto insurance industry? What is the best health insurance in the US? What are the steps to creating an insurance company? 1 Answer Voted Oldest Recent vaasu tenali 0 Questions 1 Answer 0 Best Answers 21 Points View Profile vaasu tenali 2021-06-07T03:17:19+00:00Added an answer on June 7, 2021 at 3:17 am What is the minimum creditworthiness required to obtain a home loan? While most lenders use your FICO score to determine your credit risk and interest rate, there is no set numerical value that guarantees you will get a mortgage because lenders consider a variety of other factors such as employment, salary, credit history, and debt . to the income ratio. With that in mind, here’s a basic rundown of how your credit affects your mortgage eligibility: 750-850 borrowers with FICO scores between 750 and 850 will be offered the lowest interest rates and the best terms lenders will be offering you the red carpet. 720-749 scores between 720 and 749 are very good and will give you lower interest rates and better terms, but starting this year borrowers with a credit score below 740 will have an additional cost on their loan (usually in interest rate or points). .Scores between 680 and 719 mean your credit is good – you may not get good interest rates, but you can get decent credit. 620-679 If your FICO score is between 620 and 679, your credit is fine. You can probably take out a loan, but you will pay a higher interest rate. You need to work on improving your score before taking out a mortgage. 619 and below scores below 620 will place borrowers in the “subprime” category, where they will receive very high interest rates and less desirable options on loan terms and types. Borrowers with a FICO score below 600 will be low risk with a high probability of default Lenders will charge you very high interest rates or will refuse to lend you. If your score is less than 500, the most likely that you will not qualify for a home loan.You need to focus on rebuilding your credit. The best recommendation for getting a mortgage is to wait, improve your credit score, and then apply for a traditional mortgage. It may take a year or two for your credit to build up enough to qualify for a home loan. Remember to check your credit report at least once a year to make sure you have good credit you can contact credit reporting agencies directly: Equifax: (800) 685-1111, http://www.equifax.com http://www.experian.com http://www.transunion.com If an error is found, the credit reporting agency must investigate and respond to you within 30 days. -3 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Leave an answerLeave an answerCancel reply Featured image Select file Browse Save my name, email, and website in this browser for the next time I comment.