First Time Home Buyer

What is “Good” vs “Bad” Credit When Buying a Home?

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Before we begin to answer this question, we want to make it super clear that we are NOT credit experts. If you have specific questions about credit or your credit score, please reach out to a credit specialist. Alright, let’s talk about credit scores and mortgages on a very basic level.

What is considered “good” credit to buy a home?

This is going to depend on which loan specifically you are qualifying for. In general, you’ll need a score of 620 or higher to qualify for a home loan. There are a few other factors that are considered including:

  • DTI (debt to income) is lower than 50%

  • No bankruptcies or forecloses in the last 7 years (this can vary)

  • You make your mortgage payments on time

If you know your score is higher than 620 and you don’t have a lot of consumer debt, just know you have a better chance at qualifying for a home loan.

What is considered “bad” credit to buy a home?

This is always subject to change and can vary depending on which lender you use or which loan program you are wanting to qualify for. In general if any of these apply to your situation, there is a chance you won’t qualify for a home loan:

  • Credit score of less than 620

  • DTI is more than 50%

  • Late or missed payments on your debts

  • What type of debt accounts you have

  • Too little time established on your credit history

  • Too many inquires on your credit

  • Foreclosures or bankruptcies in the last 7 years (this can vary)

We cannot predict that if you have any of these scenerios that you can’t qualify for a home, but just know it might be harder for you. The good news is there are programs to repair your credit such as TruPath Credit that can help you quickly repair your credit so you can buy a home. The length of time this will take will just depend on your situation.

If you would like to get a better idea of what you can qualify for or if you need to work on your credit, please reach out to us at The Ben Lemon Team and we would be thrilled to help you get started!


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Ever wondered what everyone is talking about when they say, “Interest rates are low, now is the best time to refinance!”. What does this mean?

Escrow is a term used often in the financial world. When it comes to mortgages, escrow or being in escrow means that you are using money as a way to “hold” or secure your offer in place when going through the home buying process