You shouldn’t have any trouble getting a mortgage if you meet all the requirements and have a credit score of 640 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 640 or higher, you should have plenty of options.
Borrowers with a credit score of 640 can apply for conventional loans, FHA loans, VA loans, USDA loans, jumbo loans, and non-prime loans. If your credit score is 640, you might be qualified for a variety of mortgage programs.
Conventional Loan with 640 Credit Score
A conventional loan requires a credit score of 640 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 640 Credit Score
With a 640 FICO, you can definitely meet the credit score requirements as FHA loans only require a 580 credit score. You should also receive a lower interest rate if your credit score is 640 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 640 Credit Score
Now, a 640 credit score is needed to receive an automated USDA loan approval. You therefore have the minimum credit score required to be approved for a USDA loan with a score of 640.
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).
640 Credit Score Mortgage Lenders
The top mortgage lenders for borrowers with 640 credit scores 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 640. 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 640. 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 640. 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 640 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 vary for borrowers with credit scores as low as 640. 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.
Yes, there are many down payment assistance programs available to borrowers with a 640 credit score, so yes, down payment assistance is available to those with a 640 credit 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.
Is 640 a good credit score for mortgage?
Therefore, many mortgage lenders consider a credit score of 640 to be on the lower end of the range. You should be accepted, but typically it isn’t high enough to qualify for the best interest rates on any loan. Moreover, only one piece of the underwriting puzzle—your credit score—is considered.
What interest rate can I get with a 640 credit score?
A person with a credit score of 640 can typically expect to pay between 20 and 25 percent interest on credit cards. 5 and 16. 5 percent. A person with excellent credit can get a credit card with an average interest rate of 13 instead. 5 percent.
Is 648 a good credit score to buy a house?
Your score falls within the category of fair scores, which range from 580 to 669. A 648 FICO® Score is below the average credit score. Some lenders might reject a borrower’s credit application if they have credit scores in the Fair range.
Can I get a bank loan with a 640 credit score?
For a personal loan, you typically need good to excellent credit. If your credit score is fair, which is typically between 640 and 699, you may have a harder time getting approved. However, a number of lenders provide personal loans for borrowers with fair credit.