HomeReady is one of the most popular home mortgage programs in the market, thanks to its relaxed credit score requirements. If you’re wondering what FICO score is required for HomeReady, the answer is: you can qualify for HomeReady with a credit score as low as 620. However, there are some things to keep in mind:
HomeReady permits nontraditional credit.
Credit scores that are as lower than 620 are allowed.
The limit is reviewed annually.
Manual underwriting is permitted.
There’s an upper credit score minimum of 660 for properties with one unit and a minimum credit score of 680 for two-to four-unit properties.
The ability to use nontraditional credit is a major advantage of HomeReady. If you don’t have an established credit history or have had difficulty building one due to various reasons, this program may be the right fit for you. However, keep in mind that the FICO score requirements may change on an annual basis, so be sure to stay up-to-date with the latest information. If you’re looking to buy a property with more than one unit, you’ll need to meet a slightly higher credit score minimum. Regardless of your credit score, it’s always a good idea to work on improving it to increase your chances of securing a favorable mortgage rate.