Florida What Credit Score Is Needed To Buy A House?
Pretty much every type of mortgage loan in Florida has a minimum credit score requirement. While the exact value varies from one lender to another and based on the kind of loan, your score is so important that you can, in fact, be denied a mortgage loan just because of it; even if you qualify in all other areas. To put it simply, your credit score plays a huge role in determining your eligibility. Which is why our Moreira Team staff has come up with this section to help you manage your credit score in the best way possible. For additional information and inquiries be sure to contact us.
First off, how are credit scores determined in Florida? Also known as FICO score, your credit score is determined by five factors. They are: your credit payment history, your amount owed, the length of your credit history, new credit and the type of credit used. The most influential item is your credit payment history which carries 35% weight followed by the amount owed at 30% and then the order proceeds as stated above, with each of the remaining items boasting a weight of 15%, 10%, and 10% respectively.
So, in Florida, what credit score is needed to buy a house? As mentioned already, the exact score varies from one loan to another. Generally, the loan with the lowest credit score requirement is a portfolio mortgage loan. Most of them require a mere FICO score of 500. FHA and VA usually require at least a 530 credit score while USDA, jumbo and conventional loans (Fannie Mae and Freddie Mac loans) are the highest with a FICO requirement of 620.
The good news is that you can improve your score in a very short period. Here is how:
- Keep your credit card balances as low as possible
- Only take credit that you can repay
- Pay your bills on time
- Stay away from high-interest credit
- Check your credit reports frequently
For more on how to handle your credit and increase your credit score talk to us today. Don’t let your FICO score be the reason why you can’t own your dream home in Florida.
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