There are many different loans programs offered and they each have a unique credit score requirement therefore, I am going to focus on three of our most popular loan products. The most popular loan products are VA, FHA, and Conventional loans.
A VA loan requires the Veteran to have a minimum credit score of 600 but in some case can go as low as 580.
An FHA loan requires a minimum credit score of 600 but in some cases can go as low as 550.
A Conventional loan (Fannie Mae/Freddie Mac) will go as low as a 620 credit score
A credit score is only part of the equation when analyzing a credit profile. We also look at the number of tradelines paid on time and how long they have been open. Bankruptcies and Foreclosures do not necessarily disqualify the applicant from purchasing a home however, there are required waiting periods that must be met. Even if the applicant has the required credit profile, we as a lender must upload the credit report and application to an automated underwriting system and get an approved/eligible finding prior to committing to extend a pre-approval/loan approval. If an automated underwriting approval is not granted, we also have an option of submitting the loan as a manual underwrite.