FICO scoring system defines a good, fair, and bad credit score, which will influence a credit application process. A good credit score increases your chances to get a loan and receive a lower interest. According to the FICO scoring system, a good credit score starts from 700. Nevertheless, there are specific types of a loan, which require a different good, bad, and fair credit score.
If you are going to apply to a mortgage loan providers, you will be interested in a minimal credit score you are required to obtain. In fact, any financial bureau and lender can define an exact number that would reflect a good score for a house loan.
What Are Different Credit Scores to Buy a House?
A required credit score for a house loan varies and depends on the economic circumstances, such as a recession. During a housing collapse, even people with a credit score over 720 didn’t receive approval. Today’s economic situation is quite stable, so different financial companies and bureaus managed to provide a specific number. According to FICO, 620 is the lowest point of your credit score. FHA sets another lowest point – 580.
Still, some lenders tend to set their own credit scores for a house loan. So, an average credit score to buy a house is 600.