Home Buying Round Up: Let’s Talk About Your Credit Score

If you’re thinking about buying a home in Raleigh, you’ve probably checked your credit score at least once, and maybe even been a bit dismayed at what you found.

The truth is, many would-be homeowners out there feel like their credit score has to be in the high-700s in order to buy a home. Luckily, we’re here to set the record straight.

You Don’t Need an “Exceptional” Credit Score to Buy a Home

Did you know that only 19% of Americans have a credit score between 740 and 799, according to Experian?

Having a low credit score doesn’t mean you can’t afford, or won’t be able, to buy a home. There are a number of unique loan programs out there that don’t have a credit score minimum, and may not even require a hefty down payment.

Here Are Some Loan Examples

A man writing on some papers with a pen.

The Fair Housing Administration offers a unique FHA loan that only requires a credit score minimum of 580, if you want to qualify for the low down payment advantage.

The U.S. Department of Agriculture does not set a minimum, but lenders throughout the industry typically require around 640.

For active-duty or retired military members, the Veterans Affair loan does not set any credit score minimum requirement.

The bottom line? You can still be approved for a mortgage even if your credit score is below a 700.

Don’t Have a 700+ Score? You Can Still Buy a Home in Raleigh

Be honest: when is the last time you checked your credit score? Many Americans refrain from checking it because they fear it’s too low.

However, according to FICO, the average credit score has steadily risen year after year! In 2009, the average FICO credit score was around 680. In mid-2018, it had risen to around 704.

If you’re worried about your options as a homebuyer, we highly recommend checking your credit score. The result may surprise you!

Still Worried About Buying a Home?

Please give us a call. We would love to sit down with you to discuss your home-buying options in the greater Raleigh area. In addition to our extensive real estate network and resources, we are connected with a number of lenders in the area we’d love to recommend.

Homeownership is more attainable than you think! Please reach out to us at Linda Craft & Team REALTORS® to learn more about buying a home in Raleigh.

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