Yes, you can buy a house with a 645 FICO score. In fact, there are a few different ways you can do it. Here’s a breakdown of your options:
FHA loan
With a credit score of 580 or higher, you can qualify for an FHA loan to buy a home with a down payment of just 3.5%. This is a great option for first-time homebuyers who may not have a lot of money saved up for a down payment.
Conventional loan
If your credit score is 620 or higher, you may be able to qualify for a conventional loan. These loans typically require a down payment of at least 5% but you may be able to get a lower rate if you have a higher credit score.
USDA loan
You might be qualified for a USDA loan if you’re purchasing a house in a rural area. Borrowers with credit scores as low as 640 can apply for these loans, and there is no down payment needed.
VA loan
If you’re a veteran, you may be eligible for a VA loan. These loans are available to borrowers with credit scores as low as 580, and they don’t require a down payment.
What are the general rules of credit scores for mortgages?
Generally speaking, the higher your credit score, the more favorable your interest rate will be. Here’s a breakdown of the credit score ranges and the corresponding interest rates:
- Credit score of 620 or higher: You’ll likely qualify for a conventional loan with a competitive interest rate.
- Credit score of 580 to 619: You may be able to qualify for a conventional loan, but you may have to pay a higher interest rate. You may also be eligible for an FHA loan.
- Credit score of 500 to 579: You may be able to qualify for an FHA loan, but you’ll need to make a down payment of 10%.
- Credit score below 500: It will be difficult to qualify for a mortgage.
What are some tips for improving my credit score?
If you’re looking to improve your credit score, there are a few things you can do:
- Pay your bills on time. This is the most important factor in your credit score.
- Keep your credit utilization ratio low. This is the amount of credit you’re using compared to your total credit limit. Aim to keep it below 30%.
- Dispute any errors on your credit report. You can get a free copy of your credit report from each of the three major credit bureaus (Experian, Equifax, and TransUnion) once a year.
- Become an authorized user on a credit card with good credit. This can help you build your credit history.
- Consider getting a secured credit card. This is a credit card that requires you to make a security deposit. The deposit will serve as your credit limit.
You have several choices when it comes to purchasing a home if your credit score is 645. The best option for you will depend on your individual circumstances. Speak with a mortgage lender if you’re unsure which choice is best for you. They can assist you in weighing your options and selecting the ideal loan to meet your needs.
How Do Lenders Determine Your Credit Score?
Your Credit Profile Excellent 720+ Good 660-719 Avg. 620-659 Below Avg. 580-619 Poor ≤ 579
When do you intend to buy your house? Found a house; signed a purchase agreement; offer pending; will you buy in 30 days, 2 to 3 months, 4 to 5 months, or 6 months from now?
Do you have a second mortgage?
Are you a first time homebuyer?
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What Is A Good Credit Score To Buy A House?
|
Mortgage Type |
Minimum Credit Score |
|
Conventional loan |
620 |
|
FHA loan (3.5% down payment) |
580 |
|
FHA loan (10% down payment) |
500 – 579 |
|
VA loan |
No industry-standard credit score requirement (Rocket Mortgage® requires a 580 score) |
|
USDA loan |
No industry-standard credit score requirement (most lenders require a 640 score) |
What credit score do I need to buy a house / mortgage? (FICO Scores for Standard & FHA Home Loans)
FAQ
Is 645 a good credit score to buy a house?
How much can I borrow with a 645 credit score?
What is the minimum FICO score for a house?
What can I get with a 645 credit score?
|
Type of Credit
|
Do You Qualify?
|
|
Unsecured Credit Card with Rewards
|
YES
|
|
Home Loan
|
YES
|
|
Auto Loan
|
YES
|
|
Personal Loan
|
MAYBE
|
Can you buy a house with a low credit score?
Certain loan types even allow you to buy a house with a credit score as low as 500. It’s possible to buy a house with a wide range of credit scores, but the higher your credit score, the more likely you’ll be able to secure more favorable loan terms with your lender.
Can you buy a house with a 580 credit score?
If your credit score is above 580, you’re in the realm of mortgage eligibility and homeownership. With a score above 620, you should have no problem getting credit-approved to buy a house. But remember: Credit is only one piece of the puzzle.
What credit score do you need to buy a house?
No specific minimum from USDA; most lenders prefer a score of 640 or above. For a conventional mortgage, a modest credit score of 620 is typically sufficient, with just a 3% down payment. However, borrowers with a lower credit score may face a higher interest rate and the cost of private mortgage insurance (PMI), especially with less than 20% down.
How does a FICO® score affect a home loan?
After all, your FICO® Score is reported by three different credit bureaus. If you’re applying for a loan on your own, lenders get your credit score from each of the three major credit rating agencies and use the middle or median score to qualify you for a home loan.