What's your Credit Score? A simple question, right? Sure, but for some reason this question seems to scare a large portion of home buyers away, even those with good credit; but why? One reason is because most people aren't monitoring their credit scores on a monthly basis, and the next reason is because over 80% do not actually know what score is needed to buy a home and listen to friends; but a one size fits all approach doesn't work when buying a home. Did you know the Federal Housing Administration or FHA as most people know it as will allow a buyer to purchase a home with a 500 credit score?
Your Credit, and a Horror Movie aren't the same thing!
There're three credit bureaus used to qualify a potential home buyer for a home loan, and they are Eqifax, Experian, and Transunion. If each bureau assigns a credit score to your profile, what score is used to purchase a home?
Here is a Myth Buster for you.
Your Credit Scores 590, 500, 580
If you said 580 that would be correct, because your mid score is used to qualify you for a home loan, in this scenario, you'll qualify for an FHA home loan with a lower down payment of 3.5% instead of 10% because it meets the 580 3.5% down minimum score.
