Real Estate Financing - The Truth About Low FICO Credit Scores

When financing real estate it's important to know that a low FICO credit score does not mean you won't qualify for a home mortgage.

The FICO credit score is just one of many myriad factors that are considered in mortgage applications.  Although it's taken into account there are no minimum scores expected. A FICO credit score is not a requirement for most conventional or government loans like FHA loans or VA loans.

Borrowers can submit information about income, assets and equity to determine how much the down payment should be, which is processed through an automated underwriting system.

If an application isn't approved for the first time, it can always be resubmitted after modifiying it, for example, like raising the down payment.  An application can be resubmitted several times and it's not uncommon for this to happen either.

This is a little-known truth about low credit scores and real estate financing.