In a recent article by the Wharton School of Business at the University of Pennsylvania, it was revealed that some millennials are not looking to buy a home simply because they don’t believe they can qualify for a mortgage.
Source: Millennials: What Credit Score is Needed to Buy a Home?
The question, what credit score do I need to buy a home is a difficult one to answer because, dependent on numerous factors, not the least of which being the type of buyer, the answer can run the gamut.
For example, if you are a traditional first time home buyer seeking institutional lending rates (high 3% to low 4% as of this writing), you’d be hard pressed to qualify with anything less than a 620 yet, are there exceptions? Of course there are.
On the other hand, if you are an investor, the distinction being one that will not occupy the home as their primary residence, or someone with difficulty qualifying for more traditional lending, then you may not need any credit at all depending on how much you can buy it for versus how much it’s worth, repairs, and the like.
Perhaps most important is the question not asked meaning, contact a local professional with your desire, wants/needs and qualifications (or lack thereof) and let us sort it out. That’s what we do. Until then, all the best!
Norberto Villanueva is a licensed broker and experienced loan officer offering full service real estate and related services in Colorado Springs and surrounding areas. Contact Norberto at 719-453-8690 for a free consultation or by submitting a request in the lower right hand section of this page.
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