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So, you’re ready to buy a house, but you’re not sure what rates you might qualify for.
A credit score of 680 to 720 is pretty good. With a score in that range, you could get a low interest rate on a FHA loan.
But there’s a catch.
Lenders don’t like to tell you what rates you might expect without first getting your personal info.
Why would you share your info if they won’t share theirs?
That’s one thing that sets the Wendy Thompson Team apart:
We give you the goods up front. You’ll never wonder what your rates might be because we show you sample rates based on your credit score right away.
Buying a house can feel overwhelming. But we’re here to guide you every step of the way, and we’ll show you how to get the best FHA loan rates with a credit score of 680, 690, 700, 710, or 720.First, we recommend you get started with a free, quick quote by state:
Best FHA Loan For Rates With 680 to 689 Credit Score
The minimum credit score to qualify for an FHA loan with a low 3.5% down payment is 600. Since your credit score is about 80 to 90 points higher than that, you’ll see some decent rates at this point.
Your credit score isn’t the only place lenders look.
To help your lender get you a better rate, pay close attention to your:
- Debt-to-income ratio – This is the percentage of cash you have left after you pay your bills. Add up your monthly debt payments and divide the total by your income to see what yours is. If it’s at 43% or below, you should be okay.
- Employment history – Before giving you a home loan, the FHA lender needs to make sure you have enough income to pay it back. Generally, lenders consider your job history as “stable” if you have at least 2 years of employment.
sample FHA loan Rates by Credit score: 680 to 689
| Fico score | APR | Mo. Payment |
|---|---|---|
760 – 850 | 3.375 % | $1,508.00 |
700 – 759 | 3.375 % | $1,508.00 |
680 – 699 | 3.5 % | $1,525 |
660 – 679 | 3.5 % | $1,525.00 |
640 – 659 | 3.625 % | $1,542.00 |
600 – 639 | 4.875 % | $1,718.00 |
*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.
Keep in mind that rates constantly change so it is best to use our rate checker below for an accurate rate.
A common misconception is that FHA loans are for first-time home buyers.
That simply isn’t true!
FHA loans are issued by the Federal Housing Administration. They have a low down payment option of just 3.5%, making FHA loans an excellent opportunity for borrowers with low-to-moderate income.
Best FHA Loan For Rates With 690 to 699 Credit Score
Did you see that better interest rates are available for people with higher credit scores?
You’d be surprised to know that a modest jump in your credit score can shave tens of thousands of dollars in interest off your loan.
If your credit is 690 to 699, you’ll get a fair rate. Make a few changes to bump your credit score up a little into the 700s, and you’ll see a huge improvement with the interest you pay.
We’ll talk about how to raise your credit score in a minute.
sample FHA loan Rates by Credit score: 690 to 699
| Fico score | APR | Mo. Payment |
|---|---|---|
760 – 850 | 3.375 % | $1,508.00 |
700 – 759 | 3.375 % | $1,508.00 |
680 – 699 | 3.5 % | $1,525 |
660 – 679 | 3.5 % | $1,525.00 |
640 – 659 | 3.625 % | $1,542.00 |
600 – 639 | 4.875 % | $1,718.00 |
*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.
Keep in mind that rates constantly change so it is best to use our rate checker below for an accurate rate.
Best FHA Loan For Rates With 700 to 720 Credit Score
FHA lenders consider a credit score that is 700 to be “good.” It makes sense considering the average credit score in the U.S. is 703, according to data from Experian.
The interest rates you could get if your credit score is 700, 710, or 720 are some of the best available.
In this range, based on a $250,000.00 FHA home loan, your monthly payment would be roughly $1,100.
sample FHA loan Rates by Credit score: 700 to 720
| Fico score | APR | Mo. Payment |
|---|---|---|
760 – 850 | 3.375 % | $1,508.00 |
700 – 759 | 3.377 | $1,106.00 |
680 – 699 | 3.5 % | $1,525 |
660 – 679 | 3.5 % | $1,525.00 |
640 – 659 | 3.625 % | $1,542.00 |
600 – 639 | 4.875 % | $1,718.00 |
*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.
Keep in mind that rates constantly change so it is best to use our rate checker below for an accurate rate.
Tips To Improve Your Credit Score
The Wendy Thompson Lending Team surprises people all the time by showing them how simple improving your credit score can be.
Here’s how to make it happen:
- Watch your due dates – A late payment could drop your score as much as 100 points. Ouch.
- Check account balances – Lenders can worry you’re borrowing more than you can pay back. Paying down debt helps to show FHA lenders you have responsible borrowing habits.
- Just say no to new credit – Too many new credit inquiries can set off a red flag for lenders. You’re better off not opening new accounts if you’re shopping for a home loan.
Want help to increase your credit score?
The Wendy Thompson Lending Team can do an in-depth assessment and tell you exactly how to improve it!
Is 680 a Good Credit Score?
A credit score of 680 is undeniably a positive sign. It’s generally considered a good credit score and often exceeds the minimum credit score requirements for most FHA loans. However, let’s explore this score further.
- What Does It Mean?
A credit score of 680 signifies responsible financial management. It implies that you’ve handled credit well and made consistent, on-time payments. This bodes well for loan approval.
- FHA Loan Eligibility:
Most lenders accept credit scores above 580 for FHA loans, which require a minimum down payment of 3.5%. With a score of 680, you’re comfortably above this threshold, increasing your loan eligibility.
- Impact on Your Loan:
While 680 is a good score, it may not fetch the absolute best rates available. Higher scores can secure lower interest rates and better terms. Still, a 680 score should offer competitive rates.
- Lender Variability:
Remember, lenders differ in their credit score requirements. Some may have stricter criteria, while others are more lenient. Shopping around is essential.
- Aim Higher:
If you’re considering a major loan, like a mortgage, boosting your score further (into the 700s or beyond) can potentially unlock even better terms.
Overall, a credit score of 680 is a valuable asset when seeking loans, demonstrating your creditworthiness and improving your chances of securing favorable loan terms.
How Much Can I Borrow with a 680 Credit Score?
The amount you can borrow with a 680 credit score hinges on various factors, including your financial health, income, and the lending institution’s policies. Here’s what you need to know:
- Lender Differences:
Lenders have varying lending policies. Some may require higher credit scores, while others may be more flexible.
- Debt-to-Income Ratio (DTI):
Your DTI, which compares your monthly debt payments to your income, heavily influences borrowing capacity. Lower DTIs are more favorable.
- Income Matters:
A healthy income is crucial for loan approval. It assures lenders that you can repay the loan.
- Loan Type:
Different loans (mortgages, personal loans, auto loans) have distinct criteria. Mortgage lenders, for instance, have specific guidelines.
- Loan-to-Value (LTV) Ratio:
For mortgages, LTV matters. It’s the loan amount relative to the property’s value. A lower LTV can increase your borrowing potential.
- Credit Score Range:
A 680 credit score is considered fair to good. While not the highest, it’s generally eligible for many lending options.
- Down Payment:
For mortgages, a larger down payment can boost the loan amount you qualify for.
To get an exact figure of your borrowing capacity with a 680 credit score, contact lenders directly. They’ll assess your unique financial situation and provide precise loan amounts. Remember that responsible borrowing considers not only what you can borrow but also what you can comfortably repay.
Qualifying for an FHA Loan with a 680 – 720 Score
Qualifying for an FHA loan with a credit score ranging from 680 to 720 is favorable. Here’s what you can expect in this credit score range:
- Credit Score Requirements:
Most FHA-approved lenders accept scores in this range. You meet or exceed the minimum requirements, increasing your eligibility.
- Down Payment:
With this credit score, you may qualify for the standard FHA down payment of 3.5%, making homeownership more accessible.
- Interest Rates:
While not the highest credit score range, 680 to 720 typically secures competitive interest rates, ensuring affordable homeownership.
- Debt-to-Income Ratio (DTI):
A DTI below 43% is preferred by lenders. In this credit range, you should comfortably meet these requirements.
- Reserve Funds:
Some lenders may require savings to cover mortgage payments, strengthening your application.
- Documentation:
Prepare necessary documents like proof of income, employment history, and tax records to demonstrate your repayment ability.
- Preapproval:
Consider getting preapproved before house hunting. It provides a clear budget and shows sellers your commitment.
- Closing Costs:
Budget for closing costs, which vary. It’s an essential part of homeownership expenses.
A credit score in the range of 680 to 720 positions you well for an FHA loan. It indicates financial responsibility and enhances your prospects for favorable loan terms.
next steps to get your fha loan
If you’re ready to say “yes” to your new home, call the Wendy Thompson Team. We can do a professional analysis of your finances and give you custom tips to boost your credit score.
I can hear you now:
I can get custom tips to improve my credit score?
Yes!
Even raising your score a few notches can get lenders to give you a break on the interest they charge.
And that can save you money on your FHA loan over the next 15 to 30 years.
Don’t settle for any FHA lender. Pick one that dedicates themselves to helping you get into your dream home and save you money at the same time.
Pick the Wendy Thompson Lending Team – call us today!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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