Is 666 a good credit score for a home loan?
Yes, your 666 credit score can qualify you for a mortgage. And you have a couple of main options. With a credit score of 580 or higher, you can qualify for an FHA loan to buy a home with a down payment of just 3.5%.
In fact, the minimum credit score to buy a house can be as low as 580, which falls into the “fair credit” category. With a credit score of 620 or higher, you're eligible for most types of mortgages. However, mortgage lenders consider more than just your credit score.
With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780. Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000).
Key Things to Know About a 666 Credit Score
For example, you should be able to qualify for unsecured credit cards and personal loans, but the interest rate may be fairly high.
A FICO® Score of 666 places you within a population of consumers whose credit may be seen as Fair. Your 666 FICO® Score is lower than the average U.S. credit score. 17% of all consumers have FICO® Scores in the Fair range (580-669)
You typically need at least a 620 credit score to qualify for a conventional loan. Though, the higher your score, the better your chances of getting approved for the best rates.
Conventional mortgages
Require a minimum down payment of 3% of the home's sale price. Tend to have much lower mortgage rates than most. Require no upfront mortgage insurance for down payments of at least 20% Have no set minimum credit score but most lenders will probably be looking for 620+
In general, you'll need a FICO credit score of at least 600 to qualify for a traditional auto loan. However, the minimum credit score required with vary from lender to lender.
A 760 credit score is labeled/considered very good by the FICO score model, as it falls between the ranges of 740-799. Explore tips to maintain your 760 score.
The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850. The higher your score, the better.
What is a good credit score for a mortgage?
It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly mortgage payments.
A very poor credit score is in the range of 300 – 600, with 601 – 660 considered to be poor. A score of 661 – 720 is fair. And an excellent score is in the range of 781 – 850.
The primary credit scoring models are FICO® and VantageScore®, and both are equally accurate. Although both are accurate, most lenders are looking at your FICO score when you apply for a loan.
On a salary of $36,000 per year, you can afford a house priced around $100,000-$110,000 with a monthly payment of just over $1,000. This assumes you have no other debts you're paying off, but also that you haven't been able to save much for a down payment.
The home price you can afford depends on your specific financial situation—your down payment, existing debts, and mortgage rate all play a role. Most experts recommend spending 25% to 36% of your gross monthly income on housing. For a $70,000 salary, that's a mortgage payment between roughly $1,450 and $2,100.
To qualify for a $100,000 personal loan, you'll need a credit score of 720 or above and a high income. Large unsecured loans tend to be expensive because they have high interest rates and long loan terms.
The 2.5 times your income rule
Based on this rule, you would need to earn $100,000 per year to comfortably purchase a $250,000 home.
| Conventional Loan (3% down) | Conventional Loan (20% down) | |
|---|---|---|
| Down Payment | $7,500 | $50,000 |
| Closing Costs (2.5%) | $6,250 | $6,250 |
| Cash Reserves | $3,000 | $2,200 |
| Total Money Needed | $16,750 | $58,405 |
A USDA loan is insured by the U.S. Department of Agriculture and is meant for low- to moderate-income home buyers. The USDA doesn't require a down payment and doesn't set a minimum credit score requirement, though most lenders will want borrowers to have at least a 640.
Putting down this amount generally means you won't have to worry about private mortgage insurance (PMI), which eliminates one cost of home ownership. For a $400,000 home, a 20% down payment comes to $80,000. That means your loan is for $320,000. You can start shopping for a mortgage right away.
How much is a downpayment on a 300k house?
How much down payment for a $300,000 house? The down payment needed for a $300,000 house can range from 3% to 20% of the purchase price, which means you'd need to save between $9,000 and $60,000. If you get a conventional loan, that is. You'll need $10,500, or 3.5% of the home price, with a FHA loan.
Often, a down payment for a home is expressed as a percentage of the purchase price. As an example, for a $250,000 home, a down payment of 3.5% is $8,750, while 20% is $50,000.
A 666 credit score is generally a fair score. While a lot of people have fair scores, you may still find it difficult to get approved for credit without high fees and interest rates with a score in this range.
You can borrow as much as $40,000 - $100,000+ with a 650 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
With a 680 credit score, you can qualify for mortgages, auto loans, credit cards, personal loans, and more. However, the interest rates and loan amounts you are approved for will vary by lender. Generally, you may be able to borrow between $5,000 – $300,000, depending on the type of product.
