{"id":1561,"date":"2021-03-22T21:09:11","date_gmt":"2021-03-22T21:09:11","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=1561"},"modified":"2021-03-22T21:09:11","modified_gmt":"2021-03-22T21:09:11","slug":"credit-score-need-mortgage","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/credit-score-need-mortgage\/","title":{"rendered":"What Credit Score Do You Need for a Mortgage?"},"content":{"rendered":"
\"\"

What Credit Score Do You Need for a Mortgage?<\/p><\/div>\n

According to\u00a0data from the most recent\u00a0Origination Insight Report<\/em><\/a>\u00a0by\u00a0Ellie Mae<\/em>, the average FICO\u00ae\u00a0score on closed loans reached 753 in February. As lending standards have\u00a0tightened<\/a>\u00a0recently, many are concerned over whether or not their credit score is strong enough to qualify for a mortgage. While stricter lending standards could be a challenge for some, many buyers may be surprised by the options that are still available for borrowers with lower credit scores.<\/p>\n

The fact that the average American has seen their credit score go up in recent years is a great sign of financial health. As someone\u2019s score rises, they\u2019re building toward a stronger financial future. As more Americans with strong credit enter the housing market, we see a natural increase in the FICO\u00ae score distribution of closed loans, as shown in the graph below:<\/p>\n

\"\"

FICO Score Distribution<\/p><\/div>\n

If your credit score is below 750, it\u2019s easy to see this data and fear that you may not be able to qualify for a mortgage. However, that\u2019s not always the case. While the majority of borrowers right now do have a score above 750, there\u2019s more to\u00a0qualifying<\/a>\u00a0for a mortgage than just the credit score, and there are still options that allow people with lower credit scores to buy their dream home. Here\u2019s what\u00a0Experian<\/a><\/em>, a<\/em>\u00a0global leader in consumer and business credit reporting, says:<\/p>\n