What is the lowest credit rating most lenders require to get the best rate on an owner-occupied mortgage loan?

Right now you will probably need to have a minimum of a 680 mid score with a 20% down payment to get the best rate on an owner occ mortgage. There has been quite a increase in foreclosures and a large decline of lenders in the subprime market. recently. All lenders have tightened up their requirements for % of LTV, credit score, debit to income, everything. The wave has not stopped yet.





You may see more tightening of terms and these are changing almost daily. One real positive thing is that interest rates are still at all time lows. Conventional and FHA loans are still excellent fixed rates for buyers.





Make sure you deal with a reputable loan officer and get all information in writing.

What is the lowest credit rating most lenders require to get the best rate on an owner-occupied mortgage loan?
It various from lenders to lenders.
Reply:For subprime it would be above 630....





For Prime lenders I would say definitely above 675.





The difference then comes in other factors of the decision making process, such as:





*what is your debt to income ratio


*how long have you been at current job


*what is the ratio of your used credit to credit limit; it is important that it be under or aroud 50 percent.
Reply:For a new home buyer a credit score of 640 or above would be best. Anything below this might not get financed or you will end up with a horrendous interest rate. We used to work with credit scores below 600 for new home buyers but have pulled away from that. If you are interested, we can provide free, no obligation quotes - whenever you are ready.





If your credit score is below 640, I would advise waiting for it to go up so that you can get a decent interest rate and favorable loan terms.