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Are you ready to take the leap into homeownership? It might surprise you to find that the process isn’t as cut and dry as you thought.
And it’s all because lenders are so stingy with their rates!
Who would have thought getting something as simple as an interest rate would be so hard?
After all, lenders are supposed to help you get a mortgage. Right?
Well, you’re in luck.
At the Wendy Thompson Lending Team, we’ll never leave you in the dark.
We’ll be with you every step of the way.
You could qualify for a low rate with an FHA loan if your credit score is 725, 730, 735, 740, 745, 750, 755, or 760.
Are you ready to see rates based on your credit score?
Let’s jump right in.
First, we recommend you get started with a free, quick quote by state:
Best FHA Loan For Rates 725 to 734 Credit Score
Borrowing money isn’t free. Lenders charge interest, and the rate you get determines how much you’ll pay the bank for the privilege of borrowing money from them.
It’s called an APR, or annual percentage rate.
Basically, the lower the rate, the cheaper your loan is.
Let’s see what rate you might qualify for with a credit score in this range:
sample FHA loan Rates by Credit score: 725 to 734
| Fico score | APR | Mo. Payment |
|---|---|---|
700+ | 3.375 % | $1,508.00 |
660 – 699 | 3.5 % | $1,525.00 |
640 – 659 | 3.625 % | $1,542.00 |
620 – 639 | Currently Unavailable | N/A |
600 – 619 | Currently Unavailable | N/A |
*Updated 6/1/2021 – Rates are based on a $250,000 home with a 3.5% down payment, and includes principal, interest, taxes and insurance. Rates change often and differ based on your state, down payment, and loan amount. Click here for correct rates based on your situation.
If your number is above 700, you already have what’s considered a “good” credit score.
But remember: The better your credit, the better your rate.
There are a few strategic moves you can do to boost your credit score and get a lower rate. We’ll talk more about that in a minute.
Best FHA Loan For Rates 735 to 744 credit score
With a credit score in this range, you’re on your way to a great rate. But you need to know that lenders look at more than just your credit score.
Your debt-to-income (DTI) ratio is also important.
DTI is a fancy way of measuring how much you owe compared to how much income you have. It tells a lender how much cash is left after you pay your bills.
That’s why your DTI matters: It shows the lender whether you can afford to make a mortgage payment.
sample FHA loan Rates by Credit score: 735 to 744
| Fico score | APR | Mo. Payment |
|---|---|---|
700+ | 3.375 % | $1,508.00 |
660 – 699 | 3.5 % | $1,525.00 |
640 – 659 | 3.625 % | $1,542.00 |
620 – 639 | Currently Unavailable | N/A |
600 – 619 | Currently Unavailable | N/A |
*Updated 6/1/2021 – Rates are based on a $250,000 home with a 3.5% down payment, and includes principal, interest, taxes and insurance. Rates change often and differ based on your state, down payment, and loan amount. Click here for correct rates based on your situation.
With a DTI of 50% or less and a credit score between 735 to 744, you can get a good rate on your FHA loan.
Best FHA Loan For Rates 745 to 754 Credit Score
Just because you have a credit score that’s hovering around the 750s doesn’t mean you can afford a significant down payment.
An FHA loan can help.
You might have thought an FHA loan is only for first-time homebuyers. But that’s not true at all.
The Federal Housing Administration (FHA) lets people just like you borrow money. With a lower down payment – usually only 3.5% – you can get the keys to your new home.
sample FHA loan Rates by Credit score: 745 to 754
| Fico score | APR | Mo. Payment |
|---|---|---|
700+ | 3.375 % | $1,508.00 |
660 – 699 | 3.5 % | $1,525.00 |
640 – 659 | 3.625 % | $1,542.00 |
620 – 639 | Currently Unavailable | N/A |
600 – 619 | Currently Unavailable | N/A |
*Updated 6/1/2021 – Rates are based on a $250,000 home with a 3.5% down payment, and includes principal, interest, taxes and insurance. Rates change often and differ based on your state, down payment, and loan amount. Click here for correct rates based on your situation.
Best FHA Loan Rates For 755 To 760 Credit Score
FHA lenders can consider a credit score that’s 755 to 760 superb. The closer you get to 800, the better your rate can be.
Since FHA loans can last 15 to 30 years, a lower rate can save you tens of thousands of dollars over the life of your loan.
Let’s take another look at those sample rates.
SAMPLE FHA LOAN RATES BY CREDIT SCORE: 755 TO 760
| Fico score | APR | Mo. Payment |
|---|---|---|
700+ | 3.375 % | $1,508.00 |
660 – 699 | 3.5 % | $1,525.00 |
640 – 659 | 3.625 % | $1,542.00 |
620 – 639 | Currently Unavailable | N/A |
600 – 619 | Currently Unavailable | N/A |
*Updated 6/1/2021 – Rates are based on a $250,000 home with a 3.5% down payment, and includes principal, interest, taxes and insurance. Rates change often and differ based on your state, down payment, and loan amount. Click here for correct rates based on your situation.
A drop of just 0.50% in your interest rate could save you more than $20,000 on a 30-year FHA loan.
Simple Tricks to Jump-Start Your Credit Score
Your credit score plays a big role in the rate you get for an FHA loan. Here are a few ways to increase your credit score.
- – Get a copy of your credit report from all 3 reporting bureaus
- – Dispute any mistakes you find on your report
- – Make sure you pay all of your bills on time
- – Don’t max out your credit cards or open new accounts
If you’re not sure what steps to take, or just want some extra guidance, the Wendy Thompson Lending Team is here for you.
We’ll do an in-depth assessment of your credit and tell you precisely what you need to do to increase your credit score.
725 Credit Score Home Loan: Your Detailed Guide
The Federal Housing Administration (FHA) doesn’t publicly share specific data on the number of FHA loans attributed to borrowers holding a 725-760 credit score. However, analyzing the overall FHA loan volume alongside the distribution of credit scores among FHA borrowers offers a useful approximation.
In 2022, the U.S. Department of Housing and Urban Development (HUD) reported approximately 1.6 million FHA loans originated. Noteworthy, around 25% of all FHA borrowers were within the 725-760 credit score range according to the Mortgage Bankers Association (MBA). Doing the math, one can estimate that roughly 400,000 of those FHA loans were sanctioned to individuals having a 725 credit score home loan qualification. Though it’s a ballpark figure, it illustrates the favorable acceptance of applicants with good credit scores.
725 Credit Score Home Loan Benefits
So, is 725 considered a good score when considering a home loan? Absolutely! Holding a 725 credit score places you firmly above the midpoint of the typical credit score range of 300-850, opening doors to numerous advantages:
- Mortgage Terms and Loan Qualifications: A 725 credit score home loan qualification can potentially fetch you favorable mortgage terms. You are likely to qualify for an array of credit products, including sought-after mortgages.
- Competitive Interest Rates: Embarking on your journey with a 725 credit score home loan inquiry could unlock competitive interest rates for you, thereby offering agreeable loan terms.
- Credit Approval: When pursuing a 725 credit score home loan, you stand a strong chance of approval, granted other financial parameters meet the lender’s criteria.
- Attractive Credit Card Offers: Sporting a 725 score often translates to landing enticing credit card offers with substantial rewards and benefits.
- Ease in Renting and Leasing: If a home loan is not on your cards immediately, a 725 credit score still facilitates smoother renting and leasing processes.
Remember, preserving and potentially enhancing your 725 credit score over time involves diligent credit habits such as timely bill payments and steering clear of substantial debt.
The Road from 760 to an 800 Credit Score
While a 760 score is a commendable foundation, elevating it to 800 requires strategic actions paired with patience. If you’re pondering on how to spruce up your score to step closer to a 725 credit score home loan with even better terms, here is your blueprint:
- Regular Credit Reports Check: Kickstart your journey with a meticulous review of your credit reports from major bureaus for any discrepancies.
- Timely Bill Payments: Maintain a stellar payment history by clearing all dues, including those for your 725 credit score home loan, on time.
- Smart Credit Utilization: Work towards lowering your credit card balances relative to your limits to enhance your credit score.
- Guard Your Credit History: Preserve older credit accounts to signify robust creditworthiness over a longer span.
- Diverse Credit Portfolio: Hold a mixed bag of credit types, such as credit cards, car loans, and your 725 credit score home loan to uplift your score.
- Strategic Credit Applications: Apply for new credit lines judiciously to avoid potential score dips.
Remember, consistent adherence to responsible credit practices will be your ally in boosting your credit score gradually. Reaching an 800 score is an ambitious yet achievable goal, setting a firm ground for securing a 725 credit score home loan with the most desirable terms.
Let’s Go House Shopping!
Buying a house is exciting! Don’t ruin the experience by choosing the wrong lender. Without the expertise and know-how to get you approved for an FHA loan, you could lose your dream home.
But we won’t let that happen.
Call the Wendy Thompson Lending Team, and we’ll help you pick the right lender based on your credit score.
Unique only to the Wendy Thompson Lending Team is our:
Deciding on the right FHA lender is the most important decision you will make. Choosing the wrong lender can result in you losing your dream home or costing you hundreds of thousands of dollars in more interest over the life of your mortgage.
Don’t make that mistake, contact the Wendy Thompson Lending Team today!
You can start the process by clicking the yellow ‘See if I’m Eligible’ button on the right side bar under the ‘Start your quote for a Home Loan’ or call Wendy’s Team directly at (901) 250-2294, to get started on living the American Dream in the home of your Dreams!
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