Think Your Credit Score Isn’t Good Enough To Buy a Home? Think Again

According to Keeping Current Matters, 90% of buyers either don’t know the credit score lenders typically look for — or they assume it needs to be higher than it actually is. That means many people are waiting to buy simply because they think their score isn’t good enough. But here’s the good news: qualifying for a mortgage may be more achievable than you think.

There's No One Magic Credit Score

When it comes to buying a home, there isn’t a universal credit score requirement. Instead, different types of loans offer flexibility, and the range of qualifying scores is broader than most buyers expect.

Take a look at the latest data on median credit scores for different home loan types:

• • • • • FHA loans have a median score of 682

        • USDA loans come in at 705

        • VA loans at 736

        • Conventional loans sit around 768

        • Jumbo loans top the list at 780
          
          

The average score across the board is 758 — but even if your score is below that, you may still have great options. There’s no one-size-fits-all number, and that opens doors for more buyers.

Why Your Credit Score Still Matters

While there’s flexibility, your credit score does play a role in your homebuying journey. It can influence:

• • • • • Which loan programs you qualify for

        • What mortgage rate you're offered

        • How much home you can ultimately afford
          
          

A higher score can help secure better terms, which means more manageable monthly payments and potential long-term savings.

Want To Improve Your Score? Here’s Where To Start

If you’re thinking of buying soon and want to work on boosting your score, here are four powerful steps to take:

• • • • • Pay bills on time — even small ones like your phone or utility bills.

        • Reduce outstanding debt — the less of your available credit you use, the better.

        • Review your credit reports — fixing any errors can help raise your score.

        • Avoid opening new accounts — too many new credit checks can have a short-term negative impact.
          
          

Bottom Line

You don’t need perfect credit to buy a home — and you may already be in a better position than you think. If you’re unsure where you stand, now is a great time to explore your options and take the next steps toward homeownership.



source: www.keepingcurrentmatters.com