Was 550 good credit to possess a mortgage?
An excellent 550 credit history is not an effective. Its believed poor. You should have a difficult time being qualified for any version of mortgage that requires a credit assessment. When you find yourself accepted getting a merchant account, anticipate to score a higher rate of interest than simply you prefer.
No, 550 is not good credit to possess a home loan. It is a poor score. This table demonstrates FICO will not give a credit history interest rates to own fico scores lower than 620.
Mortgage Costs from the Credit rating
For a home loan, an enthusiastic FHA mortgage is the greatest alternative for borrowers having a great credit rating out-of 550 or even more. A federal Homes Management (FHA) lender can take fund with credit ratings as low as five hundred if you make a down payment of at least 10%.
A credit rating of 580 or maybe more is needed to you personally discover that loan if you fail to be able to set-out 10%. But if you put-out a little effort, you happen to be in a position to make that happen mark in a number of weeks.
For those who have an awful credit score as well as your home loan company decides to deal with the job, possible probably get the maximum interest rate. Once the mortgage loans need such as for instance high off payments, it is advisable to help you delay the application up to the credit improves.
