There are many misconceptions about the credit score needed to buy a house. Recently, it was reported that24%of renters believe they need a 780-800 credit score to be considered for a mortgage. The reality is they are misinformed!
Only 25% of the Americans have a FICO® Score between 740 and 800. Here is the breakdown according toExperian:
16% Very Poor (300-579)
18% Fair (580-669)
21% Good (670-739)
25% Very Good (740-799)
20% Exceptional (800-850)
Randy Hopper,Senior Vice PresidentofMortgage LendingforNavy Federal Credit Unionsaid,
“Just because you have a low credit score doesn’t mean you can’t purchase a home. There are a lot of options out there for consumers with low FICO® scores,”
There are many programs available with low or no credit score requirement. TheFederal Housing Administration(FHA) now requires a minimum FICO® score of580if you want to qualify for the low down payment advantage. TheUS Department of Agriculture(USDA) does not set a minimum credit score requirement, but most lenders require a score of at least640.Veterans Affairs(VA) loans haveno credit scorerequirement.
As you can see, none of them are above 700!
It is true that the average FICO® score for all closed loans in January was 726, but there are plenty of people taking advantage of the low credit score requirements. Here is the average FICO® Score ofclosed FHA Loanssince April 2012 according toEllie Mae:As you can see, that number has been dropping for the last seven years. As a matter of fact, the average FHA Purchase FICO® Score reported in January 2019 was 675!
One of the challenges is that Americans are unsure about their credit score. They just assume that it is too low to qualify and do not double check.Credit.comconfirmed that only57%of individuals sought out their credit score at least once last year.
“Since October 2009, the average year-over-yearFICO®Score has steadily and consistently increased, from a low of 686 in 2009 to the latest high of 704 as of 2018.”
Here is the increase in the average US FICO® Score over the same period of time as the graph earlier.
At least 84% of Americans have a score that would allow them to buy a house. If you are unsure what your score is or would like to improve your score in order to become a homeowner, sit down with a real estate professional that can help you to set a path to reach your dream!
The Turn Key Group is an assertive group of Realtors in Grand Junction Colorado. We utilize cutting edge tools and home selling techniques that make us stand out from the rest. We are Real Estate experts and we are ready to guide you through the home buying process. We are committed to fast, professional and courteous service that will help you understand and feel at ease throughout the home buying process. If you are looking for that dream home, you can count on us to help you find it and negotiate an excellent price for you.Tell us what you are looking for and we will search high and low to make your dream a reality! We will work relentlessly for you while keeping honesty and integrity at the forefront. Our trained and certified loan originators specialize in financing homes in the Western Colorado real estate market. We are prepared to find the right loan program with competitive rat es and low down payments for you.
If you currently own property and are thinking of placing it on the market, let us do the work for you! We can provide you with information about preparing your home for sale so you'll get the most money in your pocket. We have tools in place that will make your property stand out and we will price your property right in order to get it sold FAST!
Our dedication and professional service are unparalleled. In today's market, you need a quality professional working for you. We focus on your time and your investment. Contact us now. 970-244-9217
Some Highlights: Buyers are active in the market and often competing
"Bought a Single Family home in 2015 for approximately $250K in Fruita, CO.
When I first approached Cindy about finding a house to buy she really listened to what was important to me. Cindy took a genuine interest in what I had to say and how I felt about the kind of home I was looking forward to calling home. She wasted no time setting me on the right track in find that home. She even led me to a finance officer that made getting a loan a no hassle experience. When looking at the homes that I was considering she made sure she was prepared for any questions I might have about the house. She even went out of her way to find out if there was anything negative things about the house I was thinking about buying. I thought this was an admirable quality because it was my interest at the forefront not hers. Needs to say we did find the home that I am very excited to call home. I want everyone to know that Cindy Guzman cares and works very hard in getting the results that her clients are looking for. She made herself always available to me when I had questions. When it came time to look at the houses that I was interested in she made time to accommodate my schedule. I would highly recommend Cindy Guzman is the one you want to find that place that you would be proud to call home!! "