You shouldn’t have any trouble getting a mortgage if you meet all the requirements and have a credit score of 630 or higher. 620 to 680 credit scores are typically regarded as fair credit. Borrowers with credit scores in the 500s can access loan programs from a variety of mortgage lenders. As a result, if your credit score is 630 or higher, you should have plenty of options.
Borrowers with a credit score of 630 can apply for conventional loans, FHA loans, VA loans, USDA loans, jumbo loans, and non-prime loans. You might be qualified for several different mortgage programs with a score of 630.
Conventional Loan with 630 Credit Score
A conventional loan requires a credit score of 630 at a minimum. You must fulfill all additional loan requirements in order to be eligible for a conventional loan. This includes no recent major credit events (like a bankruptcy or foreclosure), at least two years of stable employment, and a down payment of between three and five percent.
We can connect you with a mortgage lender that provides conventional loans in your area if you’d like to find out if you qualify.
FHA Loan with 630 Credit Score
With a 630 FICO, you can definitely meet the credit score requirements for FHA loans, which only have a 580 credit score requirement. You should also receive a lower interest rate if your credit score is 630 as opposed to 580 to 619 on the FICO scale.
You must also have at least two years of employment, provide two years’ worth of tax returns, and provide your two most recent pay stubs in order to qualify for an FHA loan. Unless you have adequate “compensating factors,” like a larger down payment or cash reserves, your maximum debt-to-income ratio is 43%.
The fact that FHA loans only require a three percent down payment is one factor that draws many applicants. 5%, which can be obtained through a down payment assistance program, a gift, or a loan.
USDA Loan with 630 Credit Score
USDA loans now require a minimum credit score of 640 for an automated approval. Fortunately, you can still be approved for a USDA loan with a credit score of 630, but an underwriter will need to manually approve you. Expect to need significant “compensating factors” in order to be approved with a credit score of 630, such as prudent credit use, 2 months’ worth of mortgage payments in cash reserves (savings), a low debt-to-income ratio, and/or a lengthy employment history.
You must also purchase a property in an area that is eligible for USDA loans. Loans from the USDA are only available in rural areas and in the outskirts of big cities. In cities and larger towns, USDA loans are not available.
Additionally, you must demonstrate two years of continuous employment and submit the required income documentation (2 years’ worth of tax returns and 2 recent pay stubs).
630 Credit Score Mortgage Lenders in 2022
The top mortgage lenders for borrowers with a 630 credit score are listed below. The following lenders provide conventional and FHA loans, and they can all assist you in figuring out your options. If you need help finding a lender, we can put you in touch with one that provides loan options to borrowers with a credit score of 630. Please complete this form to be matched with a mortgage lender.
All of the lenders highlighted above provide mortgage loans to applicants with credit scores as low as 630. We can connect you with a lender that provides home loans in your area if you need help finding one.
Frequently Asked Questions
The minimum credit score needed to qualify for a jumbo loan varies by lender and can be as low as 630. The majority of jumbo lenders demand a minimum credit score of 720 from borrowers. Nevertheless, a number of non-prime lenders provide jumbo loans to borrowers with credit scores as low as 600.
If you are qualified for a VA loan (which are only available to veterans), you might be able to qualify with a 630 credit score.
If you have had a bankruptcy, foreclosure, or short sale, there are several non-prime lenders that offer home loans to borrowers even just one day after such events. What if I have had a significant credit issue recently?
Non-prime loans offer borrowers the chance to obtain a mortgage even if they do not meet the requirements for conventional and FHA loans. They don’t require waiting periods following bankruptcies, foreclosures, or short sales, and their credit requirements are much less stringent overall. Borrowers with credit scores as low as 500 (or even below 500) can also apply for non-prime loans.
Is there anything else I should be aware of regarding credit requirements? Most mortgage lenders demand that you have three trade-lines on your credit report. Auto loans, credit cards, personal loans, and other lines of credit that qualify can be used as examples. There may be exceptions to this rule, such as commonly accepted alternative bills (phone bills, utility bills, etc.). ).
The interest rate will be determined by your individual qualifications, the mortgage lender, and the date you lock your interest rate, and it will depend on a borrower with a 630 credit score. We can assist in putting you in touch with a mortgage lender who provides free rate quotes. Please complete this form to have a mortgage lender get in touch with you.
There are numerous down payment assistance programs available to borrowers with a 630 credit score, so the answer is that down payment assistance is available to those with that score. Programs can be local (at the city, county, or state level), regional, or national in scope. You can find out if you are eligible for down payment assistance from a mortgage lender. As these programs are frequently designed for lower income households, you are even more likely to qualify if you have a lower income.
How much of a loan can you get with a 630 credit score?
With a credit score of 630, you can borrow anything from a few thousand dollars to more than $100,000. Your income, your employment status, the type of loan you obtain, and even the lender all play a role in determining the precise amount of money you will receive.
Can I buy a house with 630 score?
When applying for a conventional loan, it is advised that you have a credit score of at least 620. Lenders may not be able to approve your loan or may be required to offer you a higher interest rate if your score is below 620, which could result in higher monthly payments.
What can I get approved for with a 630 credit score?
You have just entered the “fair” category of credit score bands with a credit score of 630. You may be able to get a mortgage or car loan, but you’ll probably have to pay a higher interest rate than someone with better credit would.
What is the average interest rate for a home loan for a 630 credit score?
620 to 639: APR of 6. 721% with a monthly payment of $1,293.