What kind of credit score to get a home loan

Their main qualification is that you be a veteran, an active-duty member of the military or an eligible spouse. That said, VA lenders choose their own minimum credit scores. These vary, but are generally in the low to mids. In the first six months of , VA home buyers' average credit scores ranged from to , according to Ellie Mae. Like VA loans, home loans from the U.

Department of Agriculture don't have a set minimum credit score — and lenders can require their own score minimums. But if your score is over , you could be eligible for streamlined credit processing on a USDA loan. In order to get a mortgage that's larger than the conforming loan limit — better known as a jumbo loan — most lenders will want to see a credit score that's north of or even Because lending that much money is inherently risky, lenders look for potential home buyers to have solid financials, including a strong credit score.

Using a mortgage calculator can make clear how even a slightly lower rate can make a big difference. Having a co-signer who has a better credit score could help you secure the loan. Another option would be to have "a friend — or more likely a family member — purchase the home," add you to the title and then try to refinance into your name when your credit scores improve sufficiently, according to Ted Rood, a mortgage banker in St.

Pay all bills on time: Payment history is the biggest of all the factors that affect your credit score. Check your credit reports: Look for score-lowering errors.

If you find something, dispute it. Through April , you are entitled to at least one free credit report from each of the three credit bureaus, Experian, Equifax and TransUnion, every week.

Keep credit cards open: Closing a card reduces the amount of available credit you have, which can send your credit utilization up and ding your score. Make a charge occasionally and pay it off promptly; that keeps the issuer from closing your account for inactivity. Look at your credit mix: If you have only credit cards or only installment loans, consider adding the other type so you can demonstrate a good payment record across diverse credit lines. Keep in mind you want six or more months to elapse between opening a new account and applying for a mortgage, so time applications wisely.

While you're working your way toward the credit score needed to buy a house, check your progress with a free score; some credit cards and many personal finance websites offer them.

NerdWallet offers a free credit score that updates weekly. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation for how we make money. Founded in , Bankrate has a long track record of helping people make smart financial choices. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.

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While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. When you apply to get pre-approved, your lenders will review your credit history and consider your current credit outlook. This includes looking at:.

Lenders ask these questions to get comfortable about you. Lenders also look for specific credit events known as derogatory items , like bankruptcy or delinquent accounts. Lenders know that life is unexpected and bad things happen. Low credit scores create risk for mortgage lenders, and large down payments take risk away. Therefore, buyers with the ability to increase their down payment size are more likely to get mortgage-approved. The U. A co-signer is somebody who agrees to joint responsibility for your mortgage, including repayment.

Co-signers don't have to live with you, but they will share ownership of the home. If you can't qualify on your own, then this is worth exploring. Chat with us if you have questions about your credit score and loan options.

Sources: Fannie Mae Investopedia 1 , 2 , 3. Dan Green is a former mortgage loan officer and an industry expert. Dan has helped millions of first-time home buyers get educated on mortgages, real estate, and personal finance. Have mortgage questions?