• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

640 is the Magic Credit Score For Getting A Mortgage Loan These Days

October 28, 2011 by Scott Sheldon

Share on Facebook Share on Twitter Share on Pinterest Share on LinkedIn Share on Email

As we all know getting a mortgage loan today can be challenge. Dealing with adverse credit can be somewhat unpleasant, but necessary to procure mortgage financing.

The credit score is an indicator of how likely you are to default on a monthly debt obligation in the next three months. The higher the credit score the better the terms of the mortgage.

Pure and simple.

However to get financing today, you actually don’t need to have an 800 credit score. You only need to have a credit score of 640.

Yes that’s right, 640 is the magic credit score for getting a mortgage loan!

If you are looking any other loan program ie non conventional meaning an FHA loan, a USDA mortgage, a VA mortgage or even Home Path Financing you need to have a least a credit score of 640.

Note: The middle credit score has to be 640.

Your credit report will have a high credit score, a middle score (which is the one that we use), and a low credit score.

A 640 credit score is usually comprised of a few past due items here and there, maybe some high credit card balances, an old collection account or two and/or past medical collections.

That’s the typical credit anatomy of the 640 score. If you have none of the following items listed above no lates, current on all monthly debt obligations and your credit card balances are zero or very low, it’s a safe bet, you at least have a 700 credit score.

640 is credit score required for obtaining any mortgage other than your standard conventional loan. Standard conventional mortgages are available with a 620 credit score, however there needs to be a minimum down payment of 20% (or 20% equity on a refinance). For the Sonoma County market, that is not an option for a lot of buyers who otherwise don’t have a huge down payment.

Get that mortgage loan, raise your credit score to 640.

Yes you can actually get your credit score up to 640. Maybe there’s high balances that need to be paid down on credit cards. Maybe you have cash in the bank and you’re not sure whether it makes sense to pay off debt to qualify.

Oh by the way… you are allowed to pay off debt to qualify for a home loan too. If your bank or loan officer you are presently working won’t allow it, get a second opinion because paying off debt to quality is permitted.

Credit repair takes time, sometimes upwards of 90 days or longer, but it’s worth it for you to be able to get into a house or refinance a mortgage loan to save money. You are being incentivized to purchase or refinance real estate today with interest rates in the low 4’s.

If you don’t have a 640 credit score read this information about how to get your credit score raised. If you would like to learn more about how to go about getting a mortgage loan or need to get your credit score to 640 contact us. We can go over your 640 credit score for getting a mortgage loan.

Related Mortgage Advice from Scott Sheldon

  • Mortgage Tip: Increase Your Credit Score

    So you went ahead and applied for a mortgage loan and you're all geared up…

  • Homebuying 101: How Monthly Debt Affects Your Purchasing Power

    Are you considering buying a house? If yes, your monthly debt obligations play at significant…

  • What's the minimum credit score for getting an FHA mortgage?

    You will need to have a middle credit score of 620 or better for an…

  • Mortgage Application: Pulling Credit Report

    Taking out of home loan? This might surprise you, pulling credit associated with the mortgage…

Filed Under: Credit Score Info, Loan Qualifying

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window