What ๐‘ช๐’“๐’†๐’…๐’Š๐’• ๐‘บ๐’„๐’๐’“๐’† Do You ๐‘ต๐’†๐’†๐’… ๐‘ป๐’ ๐‘ฉ๐’–๐’š ๐‘จ ๐‘ฏ๐’๐’–๐’”๐’†? ๐Ÿค”๐Ÿ’ญ๐Ÿกโ“๐Ÿง

There are many misconceptions about the credit score needed to buy a house. Recently, it was reported that 24% of renters believe they need a 780-800 credit score to be considered for a mortgage. The reality is they are misinformed!

Only 25% of the Americans have a FICOยฎ Score between 740 and 800. Here is the breakdown according to Experian:

โ™ฆ 16% Very Poor (300-579)
โ™ฆ 18% Fair (580-669)
โ™ฆ 21% Good (670-739)
โ™ฆ 25% Very Good (740-799)
โ™ฆ 20% Exceptional (800-850)

Randy Hopper, Senior Vice President of Mortgage Lending for Navy Federal Credit Union said,

โ€œJust because you have a low credit score doesnโ€™t mean you canโ€™t purchase a home. There are a lot of options out there for consumers with low FICOยฎ scores,โ€

There are many programs available with low or no credit score requirement. The Federal Housing Administration (FHA) now requires a minimum FICOยฎ score of 580 if you want to qualify for the low down payment advantage. The US Department of Agriculture (USDA) does not set a minimum credit score requirement, but most lenders require a score of at least 640. Veterans Affairs (VA) loans have no credit score requirement.

As you can see, none of them are above 700!

It is true that the average FICOยฎ score for all closed loans in January was 726, but there are plenty of people taking advantage of the low credit score requirements. Here is the average FICOยฎ Score of closed FHA Loans since April 2012 according to Ellie Mae:


As you can see, that number has been dropping for the last seven years. As a matter of fact, the average FHA Purchase FICOยฎ Score reported in January 2019 was 675!

One of the challenges is that Americans are unsure about their credit score. They just assume that it is too low to qualify and do not double check. Credit.com confirmed that only 57% of individuals sought out their credit score at least once last year.

FICOยฎ reported,

โ€œSince October 2009, the average year-over-year FICOยฎ Score has steadily and consistently increased, from a low of 686 in 2009 to the latest high of 704 as of 2018.โ€

Here is the increase in the average US FICOยฎ Score over the same period of time as the graph earlier.


Bottom Line

At least 84% of Americans have a score that will allow them to buy a house. If you are unsure what your score is or would like to improve your score in order to become a homeowner, contact us and letโ€™s get together to help you set a path to reach your DREAM!


Ady Simion Call/Text at (626) 607-8652 or email me at Ady@AdySimion.com

Click hereโ€ฆto check your home value in seconds!

Click hereโ€ฆto search great deals, foreclosures and short sales in your area.

About Ady Simion (Realtor and Public Notary)

Ady Simion was named in the Top 1% of all agents for NRT LLC a subsidiary of Realogy that operates a variety of real estate offices under brands such as Coldwell Banker, Sotheby's International Realty, Century 21, The Corcoran Group, and the technology-based brokerages ZipRealty and Climb Real Estate. NRT has 787 offices and 47,000 sales associates. Selling and buying property can be very stressful but with the right agent it can be profitable and a fun experience. Ady is also a Notary Public and being a people person he wants to help negotiate for his clients making their transactions as smooth as possible. Adyโ€™s goals are simple: He wants to be the best source of information on the Los Angeles area Real Estate market, as he assists clients through each transaction with care and professionalism. He is proud of his large referral base of clients who have placed their trust in him over the years. Why him, when there are so many good people out there?!?! โ€ข Sellers will have their property exposed to the largest team of sales professionals in the world by far. Coldwell Banker Agents sale more homes than anyone else. โ€ข Buyers will have the opportunity to view more properties exclusively. โ€ข And most importantly when you hire him you get a whole team working for you not just โ€œonly one personโ€. Ady Simion started his Professional Career as an Insurance Agent, and then mastered the Mortgage Industry focusing on helping buyers and sellers achieve their life dreams. He now is an Agent with the Largest Residential Real Estate Company in the nation and the world, Coldwell Banker, at the Pasadena office which is the leader in the areas in which he specializes. After finishing College Ady has consistently been a Top Producer in every office/business he worked at. He speaks English, Romanian and Spanish. Real Estate is constantly changing and working with an agent that has been involved in the Real Estate buying/selling process most of his life is always beneficial for clients. Call, text or e-mail him or just stop by to say Hi and ask any real estate questions you may have.

Posted on March 26, 2019, in Uncategorized. Bookmark the permalink. Leave a comment.

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