Prospective home buyers should aim to have this credit score to qualify for the best interest rates on mortgages. However, the minimum credit score requirements vary.
Conventional mortgage loans aren't insured by a government agency, like the U.S. Department of Veteran Affairs or the U.S. Department of Agriculture. Instead, these loans follow standards set by government-sponsored mortgage loan companies, Fannie Mae and Freddie Mac. Conventional loans may be secured by one of these companies or a private lender. These loans are more affordable and require a minimum 620 credit score. Down payment amounts vary.
Conventional loans are divided into conforming or non-conforming loans based on whether they "conform" or follow lending rules set by Fannie Mae and Freddie Mac.while non-conforming loans may exceed those limits and are considered "jumbo" loans, which we discuss the credit requirements for next.A jumbo loan exceeds the maximum loan amount limits set by the Federal Housing Finance Agency.
Keep in mind that if you make a down payment less than 20%, lenders will probably require you to take out primary mortgage insurance to cover the cost if you default. PMI can cost as low as 0.5% to upwards of 2% of your loan amount annually, according to
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