Many times people will ask me “can I get a mortgage if I have bad credit?” and more often than ever before my answer has been “most likely not… until you fix your credit.”
This answer was much different than just a couple of years ago – I was cleaning out a box of old work files and came across a marketing piece from one lender in 2005 that said something like:
- No Credit?
- No Assets?
- No Job?
- No Problem!
While it may have been true in the past, now in 2009 lenders have tighter guidelines than they have in the last few years and credit scores are more important than ever.
What is the minimum credit score that you can have and hope to qualify for some kind of loan?
620.
And that 620 needs to be your middle credit score, not your highest one. You have a credit score from each of the big three bureaus and the one that lenders look at is the middle one.
Now for a few exceptions.
With an California FHA streamline or VA streamline program, there are still a few lenders who are not requiring a minimum credit score, only that you have been on time with your mortgage and have no more than one 30 day late payment in the last 12 months. Note that I used the word few. Most lenders are now requiring at least a 620 minimum credit score.
Other than the FHA / VA Streamline programs?
Plan on having at least a 620 credit score to qualify for a loan.
Any loan.
