Blog #91: Understanding Credit Score Ranges—and How They Affect Your Buying Power

What Is a Good Credit Score for Buying a Home?

Title: Understanding Credit Score Ranges—and How They Affect Your Buying Power

Credit scores are more than just numbers—they’re gatekeepers to opportunity. Knowing where your score falls can help you better prepare for home financing.

🔢 Credit Score Ranges:

🏦 FHA Loan Exceptions

FHA loans are designed for borrowers with lower credit. Here’s how:

• 580+ credit score: 3.5% down payment

• 500–579 score: Requires 10% down

• Below 500: Generally ineligible

But even with FHA options, lower credit means higher costs, stricter underwriting, and potentially more hoops to jump through.

🧠 Pro Tip:

Many lenders use FICO Mortgage Scores, which differ slightly from standard FICO 8 used by credit cards. Your score might be different when a mortgage lender pulls it.

At Mervin Morgan Realty, we help you understand which scores lenders are looking at and how to move into the next category to increase your approval odds.