What Credit Score Should I Have To Buy A Home In Glendale?

Knowing what credit score you need to buy a home in Glendale can be very confusing, especially with all the loan products today. The general idea is you need a good credit score to have a better chance at loan approval.

You can ask your mortgage broker in Glendale about the minimum credit scores required for their loan products. 

Since credit scores are crucial for qualifying for a loan, we’ll look at the minimums required based on the type of loan you prefer.

What are credit scores?

You always hear about them when you apply for a home loan, but for first-timers unfamiliar with them, here’s what they are all about.

A credit score is a number between 300 to 850, and they indicate your creditworthiness. Lenders would always favor borrowers with higher scores, but this doesn’t mean you should kiss your dream of becoming a homeowner goodbye if you have poor scores. Various loan types have different minimum credit score requirements, so you just need to look for the right fit. 

What are the minimum credit scores required by loan type?

Before you go house hunting for your Glendale home, it would be better to know what loan type you qualify for based on your credit scores. The minimum credit scores needed usually fall between 500 to 700 but will vary depending on the type of loan you’re applying for. 

If you have good to high scores, you will have a wider range of loans to choose from, but if you have fair or bad scores, you may have to deal with limited options.

Are you ready to get pre-approved for a home loan in Glendale? Drop us a line or send us a message on our website so we can help you get started.

Conventional Loans

Conventional loans follow the guidelines set by Fannie Mae and Freddie Mac and are not backed up by any government agency. If you are planning to apply for one of the more popular loan types in the market today, you may be able to get a loan even with a credit score of 620. 

Many Americans choose conventional loans due to their competitive rates and flexible repayment periods.

If this type of loan interests you, reach out to Nuline Funding to get the best deals in town.

Jumbo Loans

If you need a loan amount that’s larger than the conforming loan limits on conventional loans, a jumbo loan is your best option. Most lenders would require a minimum score of around 700 since they are taking on a bigger risk due to the higher amounts involved.

To get the best rates for this type of loan, a FICO score of 740 may be sufficient. 

VA Loans

VA loans don’t have a government-set minimum credit score requirement; it’s up to the VA lender to determine their own minimum credit scores. On average, these scores are in the low to mid 600s.

If you are eligible for a VA loan, you can take advantage of this loan's no down payment requirement. Imagine getting 100% financing on your new home’s purchase price? 

You are eligible for a VA loan if you are an eligible member or veteran of the U.S. Military, National Guard, or U.S. Military Reserve. Spouses of military members who are disabled due to service or died while on active duty can also apply for a VA loan. 

FHA Loans

If you are leaning toward an FHA loan for your upcoming home purchase in Glendale, a credit score between 500 to 579 can qualify you for a loan as long as you can make a 10% down payment. You can also avail of the 3.5% down payment option, but you’ll need a score of 580 and above.

Aside from your credit scores, lenders also look at other factors before approving a loan. They will look at your income, debt-to-income ratio, down payment, savings, and employment history.

If you want to know the FHA debt-to-income ratio for you to qualify for a loan, reach out to one of our loan experts for assistance.

Are you ready to buy your Glendale home?

Now that you know what credit score you need for various loan products, you can make an informed decision on your Glendale home purchase.

If you plan to buy a home in Glendale with an FHA loan, talk with one of our loan experts to know the best way to proceed.

We’ll gladly assist you throughout the home buying process to ensure a stress-free experience from pre-approval to closing.

* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.