Many potential homebuyers delay purchasing a home because they believe they need an 800 credit score to qualify for a mortgage. The good news is that you may not need perfect credit to become a homeowner.

An excellent credit score can help you access more competitive mortgage options, but it is only one part of the lending decision.

What Credit Score Do You Need to Buy a Home?

No single credit-score requirement applies to every mortgage. The score you need will depend on several factors, including:

• The type of loan

• The lender’s requirements

• Your income and employment history

• Your existing monthly debts

• Your available down payment

• Your overall credit history

For example, FHA guidelines permit maximum financing for borrowers with a minimum decision credit score of 580. However, individual lenders may establish additional requirements, and meeting a minimum score does not guarantee approval.Review the current FHA Single Family Housing Policy Handbook.

Some lenders and loan programs may also consider borrowers with scores in the 580-to-620 range, depending on the complete financial picture.

How Does Your Credit Score Affect Your Mortgage?

Although you may not need an 800 credit score to qualify, your score can affect:

• The loan programs available to you

• Your required down payment

• Your mortgage interest rate

• Your estimated monthly payment

• The overall cost of borrowing

Borrowers with stronger credit profiles may be offered more favorable rates and terms. The Consumer Financial Protection Bureau recommends comparing mortgage rates based on your credit profile because even a small interest-rate difference can affect your monthly payment and total loan cost.Explore mortgage rates through the CFPB.

Your Credit Score Is Not the Only Factor

Mortgage lenders review more than the number on your credit report. They may also consider your debt-to-income ratio, employment history, assets, down payment, and payment history.

That means a lower credit score does not automatically eliminate your opportunity to purchase a home. It may affect which loan options are currently available to you.

Find Out Where You Stand

The best way to understand your options is to speak with a mortgage professional who can review your individual financial situation.

You may be closer to homeownership than you think.

VisitMikeMyLender.comto connect with Mike Hyche and learn which mortgage options may be available to you.

Mike Hyche | NMLS #2539640
NEXA Lending | NMLS #1660690
Equal Housing Opportunity

This information is provided for educational purposes only and is not a commitment to lend. Mortgage approval, rates, and terms are subject to borrower eligibility, program requirements, and underwriting approval.