Home Buyer FAQ: Are there Credit and Debt Requirements?

Home Buyer FAQ: Are there Credit and Debt Requirements?

For Mortgage Credit Certificate (MCC) Program:

No minimum FICO credit score or maximum debt-to-income (DTI) requirements. You simply need to meet our income limits and work with an approved lender to use this program.

 

For Down Payment Assistance (DPA) or MCC/DPA programs:

 

FHA Loans, VA or USDA-RHS Loans

Home buyers must have a minimum FICO score of 620. Please note, home buyers with a FICO score of 620-639 will be charged a .50% origination fee. Manual underwriting is acceptable for FHA loan files with a minimum 640 FICO score and maximum Debt to Income (DTI) ratio of 43%

 

Conventional Loans

Home buyers must have a minimum FICO score of 640 to qualify for the forgivable second lien DPA.  No maximum DTI requirements will apply to any loan using DPA or MCC/DPA program that receives an automated underwriting approval.

 

Please note:

If you have bad credit, we have a great network of housing counselors that are ready and willing to help (many times at no charge) you meet your homeownership goals. Visit our Texas Financial Toolbox to find a counselor near you.

 

If you have no credit, please reach out to a TSAHC lender as you still may qualify to use our DPA program. 

 

See related article:

 

What Is Debt to Income (dti)?

 

 

 

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