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Summary: Your credit score plays an important role in your ability to secure a mortgage and get a lower rate. So, what is the average credit score for those taking out an FHA loan in Washington and Oregon? We’ll explain in this article.
A receent report published by the Department of Housing and Urban Development revealed the average credit score for borrowers using an FHA loan. Home buyers who used the FHA loan program in Washington and Oregon (our primary service area) and elsewhere in the U.S. had an average credit score of 670.
These and other insight were found within “FHA Single-Family Mutual Mortgage Insurance Fund Programs,” a quarterly report that HUD sends to Congress.
Borrowers in Washington and Oregon who used the FHA loan program had an average credit score of 670. That’s based on the HUD report mentioned above.
Here’s the primary connection between FHA loans and credit scores: A higher score can help a borrower qualify for all kinds of mortgage financing, including the FHA program. Additionally, borrowers with higher credit numbers tend to qualify for lower mortgage rates, which can be a money saver.
The average credit score among FHA loan borrowers in Washington and Oregon was in the 670 range. But that’s not the minimum required score for this mortgage program. It’s just the statistical average based on all loans generated during that period.
As a result of these requirements, most of the folks who use FHA loans in Washington and Oregon have credit scores of 580 or higher. This allows them to (A) qualify for the program and (B) enjoy maximum financing with a LTV ratio up to 96.5%. This makes the program popular with first-time buyers in particular.
The HUD report mentioned earlier also revealed that the share of FHA loans with credit scores less than 640 rose to 25.9% during the second quarter. So a good portion of their business goes to borrowers who fall within the “good” to “fair” scoring category. Which underscores a point made earlier. You don’t need perfect credit to qualify for an FHA loan in Washington or Oregon.
If you have any questions about mortgages, Sammamish Mortgage can help. We have been providing mortgage programs for buyers across WA, OR, CO, and ID since 1992. Please contact us if you have questions about FHA loan or any other financing-related topics.
Immediately after the housing crisis, buyers with poor credit struggled to find home mortgage loans. Now, the market has changed the buyers with poor credit have more options when it comes to mortgage financing. This article discusses some options for those who have bad credit but are in need of a mortgage to buy a home in Washington.
Summary: One of the major factors that influences a person’s ability to secure a mortgage is their credit score. But what if your credit score is lower than it should be? Are you doomed to have your mortgage application rejected?…