Is 666 a good credit score to buy a house?
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.
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)
| Lender | Loan Amounts | Credit Score Requirement |
|---|---|---|
| SoFi | $5,000 - $100,000 | 680 |
| Wells Fargo | $3,000 - $100,000 | 660 |
| USAA | $1,000 - $100,000 | Not disclosed |
| Discover | $2,500 - $40,000 | 660 |
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+
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
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.
It's exceedingly rare for anyone to have a credit score over 900, as most credit scoring models have a maximum limit of 850, and even achieving that score is uncommon.
How to get a loan with a 666 credit score?
While it's not impossible to get a loan with a 666 credit score, you may face higher interest rates and more limited options. To improve your loan eligibility and terms, working on raising your credit score is advisable.
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.
So, if your renter has a score of 670 or higher, that's a very good credit score for most rentals. Most landlords are looking for a score somewhere between 600 – 650 since renters don't have the credit history of making mortgage payments to boost their credit score.
Credit score and mortgages
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
You'll have the best chance of getting approved with an excellent credit score, such as one above 800. You may struggle to find a lender that will approve a $50,000 loan for folks with poor or bad credit. A "poor" credit score is considered 580 or under. Most lenders require at least a "fair" score of around 670.
Can I get a mortgage with an 660 credit score? Yes, your 660 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%.
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 |
Conventional Loan Credit Requirements
It's recommended you have a credit score of 620 or higher when you apply for a conventional loan.
The annual salary needed to afford a $400,000 home is about $127,000. Over the past few years, prospective homeowners have chased a moving target: homeownership. The median sales price of houses sold in the U.S. stood at $417,700 in the fourth quarter of 2023—down from a peak of $479,500 in Q4 2022.
How much is a downpayment on a $400000 house?
Putting down 20% of the home's purchase price is a traditional and ideal down payment option. For a $400,000 home, a 20% down payment would be $80,000. This option may help you avoid private mortgage insurance (PMI) and can lead to more favorable loan terms.
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.
Since income is not one of the five factors that determine a credit score, the wealthy are just as likely to have a low credit score as the people with lower income. The rich can miss payments, rely too heavily on credit, and open too many new accounts, all of which may lower their credit score.
In the U.S., the average credit score is 716, per Experian's latest data from the second quarter of 2023. And when you break down the average credit score by age, the typical American is hovering near or above that score.
A credit score of 900 is not possible, but older scoring models that are no longer used once went up to 900 or higher. The highest possible credit score you can get now is 850.
