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What Credit Score is Needed to Buy a House

What Credit Score is Needed to Buy a House

Home ownership serves as an essential wealth creation building block. In addition to price appreciation, mortgagees gain equity through each payment, and those who can pay extra on a routine basis build additional equity and reduce their overall interest. Just as enriching, the interest you pay on the mortgage can reduce the amount of money you pay in taxes. The home then becomes the key asset that helps grow a broader investment portfolio.

But what if your credit is holding you back from qualifying for a mortgage? If you are ready to buy a home, have enough income to afford one and can’t get approved because of your credit score, you need to remedy that situation right away. Also, if you take a mortgage at a penalty interest rate, your budget may be too tight, possibly causing you to go into credit card debt, eliminating the ability to make investments and preventing you from contributing extra payments toward the principal. That’s no way to build wealth.

To boost your score fast and qualify for a competitive mortgage rate, use BoostMyScore’s time-tested method of significantly increasing credit scores in as little as a couple weeks: Credit piggybacking, where you become an authorized user on a credit card and receive points for its excellent payment history.

What credit score do you need to qualify for a mortgage?

While there is no minimum score that applies to all mortgages, 580 is the lowest rating acceptable for FHA loans without a down payment of at least 10%. VA loans have no pre-set minimum, though other factors may result in a mortgage loan application denial. Most other lenders have their own credit score minimum requirements of at least 620. Conforming loans, which are backed by Fannie Mae and Freddie Mac, require at least a 620 score, though many conforming lenders have higher standards.

How credit piggybacking boosts scores faster than any other method

Improving a credit score without credit piggybacking tradelines is a slow, frustrating and costly process. It’s slow because it takes two years for new accounts to receive full credit as “seasoned” and paying down balances can take years. This long grind is frustrating because as your credit score improves in small increments, you face years of higher interest rates, down payments and deposits that keep you poor. The result is years of treading water.

Credit piggybacking tradelines can boost your score fast. The process is simple. Contact BoostMyScore and talk to one of our credit experts. They can help you select a credit tradeline that best suits your goals and current credit rating. Check out the new Credit Tradelines Simulator for help.  After purchasing the tradeline, the entire excellent payment history for the account will appear on your report in less than 60 days, guaranteed. The boost happens almost immediately, and you have saved yourself from years of treading water.

Tradeline selection tips

All BoostMyScore credit tradelines have excellent payment history, but there are a few pointers when it comes to choosing the best one for you. First, the more credit tradelines you select, the more substantial the boost. Second, the higher the credit limit and older the history of the credit tradelines purchased, the bigger the boost will be. Third, the fewer credit card accounts you have open, the more dramatic the impact of each our credit tradelines will have to boost your credit score.

To create the best possible experience for you, BoostMyScore has created a tradeline tool that uses key data to select the number of tradelines, age and limits that have the best chance of enhancing your score. BoostMyScore is the best tradeline supply company and has been helping clients for 12 years, is the only BBB-accredited tradeline supply company in the world, and offers a money back guarantee. Are you ready to boost your score so you qualify for a competitively priced mortgage? Visit BoostMyScore or call 1-800-531-1472 today to get on the road to home ownership.

Bill Airy

About the Author:

Bill Airy is the CEO and Founder of BoostMyScore. For over 12 years he has helped American consumers get a second chance at a better financial life by helping them to improve their credit score. He regularly publishes helpful content on this Blog to educate others about Credit Scores and best practices when trying to improve them.

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BoostMyScore Team