Can I buy a house with a 704 credit score?
Mortgages with a 704 Credit Score
A FICO® Score of 704 provides access to a broad array of loans and credit card products, but increasing your score can increase your odds of approval for an even greater number, at more affordable lending terms.
You can borrow from $1,000 to $100,000 or more with a 700 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.
Mortgage lenders tend to group credit scores into ranges, and applicants within one range receive the same (or similar) interest rates. On a scale of 300 to 850, a 700 credit score usually falls into the “good” range. Having a credit score of 700 is advantageous because: It can help you qualify for the loan.
Charge mortgage insurance premiums at a reduced rate. Don't have a pre-set credit score but most lenders require 620+
A score of 690 to 719 is considered good credit. Scores of 630 to 689 are fair credit. And scores of 629 or below are bad credit.
Lender | Loan Amounts | APRs |
---|---|---|
SoFi | $5,000 - $100,000 | 8.99% - 29.99% Fixed APR with all discounts |
Wells Fargo | $3,000 - $100,000 | 7.49% - 23.24% |
USAA | $1,000 - $100,000 | 7.24% - 17.65% |
Discover | $2,500 - $40,000 | 7.49% - 24.99% |
Annual Percentage Rate (APR) | Monthly payment (15-year) | Monthly payment (30-year) |
---|---|---|
6.25% | $857.42 | $615.72 |
6.50% | $871.11 | $632.07 |
6.75% | $884.91 | $648.60 |
7.00% | $898.83 | $665.30 |
To qualify for most types of mortgages, you'll need a credit score of at least 620. Some loan types, such as FHA loans, accept lower scores, but a higher score will almost always get you the lowest available interest rate. And that could save you a significant amount over your loan term.
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- Don't Close Old Credit Cards.
How much income do you need to qualify for a $300 000 mortgage?
How much do I need to make to buy a $300K house? To purchase a $300K house, you may need to make between $50,000 and $74,500 a year. This is a rule of thumb, and the specific salary will vary depending on your credit score, debt-to-income ratio, type of home loan, loan term, and mortgage rate.
If you follow the 2.5 times your income rule, you divide the cost of the home by 2.5 to determine how much money you need to earn annually to afford it. Based on this rule, you would need to earn $100,000 per year to comfortably purchase a $250,000 home.
Annual Salary | $70,000 | $70,000 |
---|---|---|
Down Payment | $30,000 | $30,000 |
Current Monthly Debts | $150 | $500 |
Mortgage Rate | 7.0% | 7.0% |
Home Buying Budget | $275,502 | $270,492 |
Assuming you have enough in savings to cover the down payment, closing costs and cost of regular upkeep, yes, you probably could afford a $200K home on a $50K annual salary. Using our example above, the monthly mortgage payment on a $200K home, including taxes and insurance, would be about $1,300.
Conventional mortgages, like the traditional 30-year fixed rate mortgage, usually require at least a 5% down payment. If you're buying a home for $200,000, in this case, you'll need $10,000 to secure a home loan.
The annual salary needed to afford a $400,000 home is about $127,000.
A bad credit score is a FICO score below 580, meaning it falls in the poor credit range. Along the same lines, a bad score in the VantageScore model is one below 601, which would belong in the poor or very poor credit ranges.
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.
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.
Annual Salary | $40,000 | $40,000 |
---|---|---|
Mortgage Rate | 7.287% | 7.287% |
Home Purchase Budget (25% monthly income on mortgage payments) | $103,800 | $114,900 |
Home Purchase Budget (28% monthly income) | $109,500 | $127,600 |
Home Purchase Budget (36% monthly income) | $141,100 | $159,300 |
How much house can I afford if I make $45000 a year?
On a salary of $45,000 per year, you can afford a house priced at around $120,000 with a monthly payment of $1,050 for a conventional home loan — that is, if you have no debt and can make a down payment. This number assumes a 6% interest rate.
Jumbo Loans
Since jumbo mortgages allow a high loan amount, lenders can be stricter about their minimum credit score requirements. For example, you may need a 740 credit score if you choose a fixed or adjustable-rate 15-year jumbo loan. But you may qualify for a 30-year fixed-rate jumbo loan with a 680 credit score.
Down Payment / Funding Fees
Assuming a $150,000 purchase price, this means you will need a minimum down payment of $5,250. If you are an eligible veteran, you will not have to pay a down payment if you are buying a home with a VA loan.
With $2,000 per month to spend on your mortgage payment, you are likely to qualify for a home with a purchase price between $250,000 to $300,000, said Matt Ward, a real estate agent in Nashville. Ward also points out that other financial factors will impact your home purchase budget.
A $150,000 30-year mortgage with a 6% interest rate comes with about an $899 monthly payment. The exact costs will depend on your loan's term and other details.
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