Question: Which FICO Score Do Home Lenders Use?

Get the Score Lenders Use to Evaluate Your Home Mortgage Loan

If your FICO® score is…Your interest rate is…And your monthly payment will be…
760 – 8503.19%$933
700 – 7593.42%$960
680 – 6993.59%$981
660 – 6793.81%$1,007

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Do mortgage lenders use FICO score 8?

FICO 8 is a credit-scoring system released in 2009. Since then, only a few lenders have adopted it. The vast majority of lenders still rely on FICO 2, 4 and 5 scores, which are all part of a larger report mortgage lenders can obtain called the residential mortgage credit report (RMCR).

What credit score is used to buy a house?

Typical minimum FICO scores by mortgage type:

FHA Loan – 580+ credit score (500-579 score is possible but unlikely) VA Loan – 620+ credit score (some lenders require 580) USDA Loan – 640+ credit score.

Do mortgage lenders use FICO or Vantage?

The short answer is yes, most lenders these days will obtain FICO credit scores when reviewing a borrower’s loan application, and also for underwriting purposes. And the scores the lender sees might be different from the ones you got from TransUnion and Equifax (since the reporting bureaus use their own scoring model).

Which is more important TransUnion or Equifax?

A: As a general matter, no one credit bureau report is “more important” than the others. The challenge, of course, for consumers is that you never really know which bureau report a lender will pull. It could be Equifax, Experian or TransUnion – or perhaps all three.

Is a FICO score of 8 good?

For now, we’re going to focus on FICO® Scores because these are the scores used by 90% of top lenders. Base FICO® Scores (FICO® Score 8) range from 300-850, while industry-specific (auto and credit card) FICO® Scores range from 250-900.

Is a 700 credit score good enough for a mortgage?

Mortgage interest rates with a 700 credit score. Generally, you need a credit score of 620 or better to qualify for a conventional Fannie Mae loan or an FHA loan with a 3.5 percent down payment. If you’re interested in a no-down payment USDA loan, the minimum credit score rises to 640.

Is Credit Karma your FICO score?

Credit scores can have a huge impact on a person’s financial life. First, there’s Credit Karma, where you can get your free VantageScore 3.0 credit scores from TransUnion and Equifax. VantageScore is a different scoring model than FICO, but is still a good way to gauge your credit standing.

What credit score is needed to buy a house first time buyers?

The Federal Housing Administration (FHA) requires a credit score of at least 500 to purchase a home with an FHA loan. Your down payment amount plays a role too. Keep in mind that most lenders require a score of at least 620-640 in order to qualify despite the FHA guidelines.

Why is Credit Karma not accurate?

Credit Karma Limitations

First, because Credit Karma uses only two of the big three credit bureaus, your score might not be entirely accurate. However, the customer review site ConsumerAffairs.com has people reporting that their Credit Karma score is quite a bit higher than their actual FICO score.