What's your Credit Score?This isa 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. The next reason is because more than 80% of consumers don't know what credit score is needed to actually buy a home and will listen to friends who's never written an offer to purchase, or mortgage contract ever; yet gives a one size fits all approach to the process. As I stated I am completely transparent and this may hurt some of their feelings when they see this, but their one size fits all approach to home buying doesn't work for all buyers due to every buyer's situation being different.
That being said 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, & 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.
