Minimum credit score to qualify for a mortgage loan

Minimum credit score to qualify mortgage loan depends upon the loan program, but credit scores don’t ‘‘approve’’ or ‘‘decline’’ anyone. Lenders may have minimum credit score requirements for particular loan programs, but you’re not automatically turned down solely because of your score. Don’t forget, just having a low credit score doesn’t mean you can’t get approved. I have spoken with countless customers who either didn’t buy a home or put it off for a long time because when they got their credit score they took it upon themselves to ‘‘decline’’ themselves and didn’t even apply for a loan. This is similar to people who don’t apply for a mortgage they want because they think their debt ratios are too high.


A recent customer called me wanting to apply for a mortgage but he knew his credit wasn’t all that great. High debt load, a couple of late payments, and not much available credit. He was right; his score was low at 581. Unfortunately for many people, once they see a score they consider ‘‘low’’ they give up without ever trying. The guy with the 581 credit score? He got approved for the best rates available for a $185,000 loan. He had some other factors that offset the low credit score, mostly a hefty down payment, but the point is that he got approved.