Minimum Credit Score To Look Into Houses?

Go USDA Rural Development and with a 640 or > you'll qualify for 102% LTV. You don't need the 20% down payment. There will be a small charge for MI that reduces on an annual basis before being removed altogether (which you can also achieve by paying down your principal balance to 80% of your home's appraised value).

The only real trade line requirements will be no open liens or judgements or collections (medical is okay in some situations) and you can't have had any late pays (30 days or >) in the past 6 months.

The catch with Rural Development, or an "RD" Loan for short, is that you must be buying in an area on the most recent Census Map considers a Rural Area.

Using the example of East Baton Rouge Parish which the entire city of Baton Rouge is in, except for a small sliver along a river boundary on Greenwell Springs Road and near Hoo Shoo Too Road is all ineligible for RD.

However, Livingston Parish, Ascension Parish and Tangipahoa Parish are experiencing explosive growth because of RD Loan's availability, good schools and lower home prices. Population Growth in LP/AP alone is expected to increase 30% over the next decade in fact.

A big factor in these "suburb parishes" growth is the cheaper land and more home for the money, but also the availability of programs like RD that allow you spend less up front cash and still provide outstanding values from a rate/term perspective.

We closed an RD loan at 3.625% on a 30 year fixed term in May of 2013 and it was an easy, efficient process (disclaimer: I have a background in real estate finance).

I suggest you pursue this type of program, or if you're set on an area considered urban or ineligible for RD, look into FHA loans which require a minimal 3% down payment.

People who pay 20% down on a home in this interest rate environment are making a poor financial decision. That cash can be put to work generating a greater return elsewhere.

Forgot about the OP mentioning his income and it would preclude him from using it. Thanks.

quote:

---

My question (TL;DR) version:
Any idea what I may be pre-approved for with take home of between $90-$100k/yr and a credit score of roughly 700?

Follow up question is any ideas on what else I can do to raise my credit score other than just simply making payments on time (i usually pay early).

Thanks in advance for the help.

---

Minimum credit score for loans we currently do is 600 for an FHA loan. You will be pre-approved based on your income before taxes, not just your take home. Then just take your average monthly income subtract out your monthly debt (including your new potential housing payment) and it can't be over 55%

If you wanted to go conventional instead of FHA minimum credit is 620 and max back ratio is 45%