What FICO score do home lenders use?

Mortgage lenders typically use older, industry-specific FICO Score 2 (Experian), FICO Score 4 (TransUnion), and FICO Score 5 (Equifax), often called "classic" scores, because they're better at predicting mortgage risk than newer versions like FICO 8. Lenders pull all three reports, get a tri-merge, and use the middle score to make decisions, focusing on payment history and credit use relevant to home loans.

Which FICO score is used when buying a house?

The credit score used in mortgage applications

While the FICO® 8 model is the most widely used scoring model for general lending decisions, banks use the following FICO scores when you apply for a mortgage: FICO® Score 2 (Experian) FICO® Score 5 (Equifax) FICO® Score 4 (TransUnion)

Which FICO score model do mortgage lenders use?

Mortgage lenders traditionally use older "classic" FICO Score versions tailored for each bureau: FICO 2 (Experian), FICO 4 (TransUnion), and FICO 5 (Equifax), often taking the median score from a tri-merge report for conforming loans. While newer models like FICO 8 or 10T and VantageScore 4.0 are becoming available, these classic scores remain dominant for loans sold to Fannie Mae & Freddie Mac, though changes are coming, with FHFA allowing newer options. 

What credit score is needed for a $250000 house?

The credit score needed to buy a $250,000 house depends on the type of mortgage. The lowest credit score you could have and still secure a mortgage would be 500 (for an FHA loan with a 10% down payment). Expect to need a minimum credit score between 580 and 640 for other loans, depending on which kind you choose.

Is FICO 8 or 9 more accurate?

FICO Score 9: Similar in its approach to credit utilization, but may calculate this slightly differently to reflect more accurate borrower behavior. Overall, FICO Score 9 offers a more updated approach to certain types of debt and credit behaviors compared to FICO Score 8, but FICO Score 8 is still more commonly used.

What Credit Score Do Mortgage Lenders Use? (Which FICO Scores Do Lenders Use?)

What credit score do you need for a $400,000 house?

Credit Score

When applying for a $400,000 home, lenders evaluate your credit scores to determine eligibility and the rates you'll receive: 740+: Best rates and terms. 700-739: Slightly higher rates. 660-699: Higher rates, may require larger down payment.

How close is your FICO score to your actual credit score?

A FICO Score is a type of credit score, the most common and influential one used by lenders, but not the only one; other credit scores, like VantageScore, use different models, so while they measure the same thing (creditworthiness), your FICO Score can differ from other credit scores by 20-100+ points due to model variations, data differences, and scoring versions. 

How much house can I afford if I make $70,000 a year?

With a $70,000 salary, you can generally afford a house between $210,000 and $350,000, but your actual budget depends heavily on your credit score, existing debts, down payment, and current mortgage rates, with lenders often following the 28/36 rule (housing costs under 28% of gross income, total debt under 36%). A good starting point is keeping your total monthly housing payment (PITI) under $1,633, but a lower Debt-to-Income (DTI) ratio and larger down payment increase your buying power. 

How can I raise my credit score 100 points in 30 days?

For most people, increasing a credit score by 100 points in a month isn't going to happen. But if you pay your bills on time, eliminate your consumer debt, don't run large balances on your cards and maintain a mix of both consumer and secured borrowing, an increase in your credit could happen within months.

What is the 2 2 2 credit rule?

The 2-2-2 credit rule is a guideline for lenders, especially for mortgages, suggesting borrowers should have at least two active credit accounts, open for at least two years, with at least two years of on-time payments, sometimes also requiring a minimum credit limit (like $2,000) for each. It shows lenders you can consistently manage multiple debts, building confidence in your financial responsibility beyond just a high credit score, and helps you qualify for larger loans. 

What is the 3 7 3 rule for a mortgage?

The correct answer option was, "B!" TRID establishes the 3/7/3 Rule by defining how long after an application the LE needs to be issued (3 days), the amount of time that must elapse from when the LE is issued to when the loan may close (7 days), and how far in advance of closing the CD must be issued (3 days).

What is a perfect FICO score?

A perfect FICO score is 850, the highest possible score, representing exceptional credit risk management, but scores of 800 and above are considered "exceptional" and often receive the same top-tier lending terms as an 850 score. Achieving an 850 requires a long history of perfect payment history, low credit utilization, and responsible credit use, though it's very rare, with only about 1.7% of Americans reaching it.
 

What are the worst mistakes for your credit score?

• Highlights: ...
• Making late payments. ...
• Making only the minimum credit card payment each month. ...
• Maxing out your credit card. ...
• Misunderstanding introductory credit card interest rates. ...
• Not reviewing your credit card and bank statements in full each month. ...
• Closing a paid-off credit card account.

Do banks use FICO 8 or 9?

Lenders widely use FICO 8 and FICO 9 to make loan decisions. However, certain industries and financial institutions aren't obligated to do so, so some lender scoring models may differ.

How quickly can I get my credit score from 500 to 700?

The time it takes to reach a 700 credit score depends on your starting point and what's on your credit report. – If your score is in the 650–690 range, you may reach 700 in a few weeks to a few months with consistent credit habits. – If you're below 600, it could take 6–12 months or longer.

Does income affect my credit score?

How does my income affect my credit score? Your income doesn't directly impact your credit score, though how much money you make affects your ability to pay off your loans and debts, which in turn affects your credit score. "Creditworthiness" is often shown through a credit score.

What brings your credit score up the fastest?

Ways to improve your credit score

• Paying your loans on time.
• Not getting too close to your credit limit.
• Having a long credit history.
• Making sure your credit report doesn't have errors.

What is the 15 3 credit card trick?

The "15" and "3" refer to the days before your credit card statement's closing date. Specifically, the rule suggests you make one payment 15 days before your statement closes and another payment three days before it closes.

What is the average credit score in the US?

The average credit score in the U.S. is around 715 (FICO), placing it in the "Good" credit range (670-739), though recent data from late 2025 shows a slight dip to 715 from 717, partly due to resuming student loan payments, with VantageScore data showing around 701-705 as well. This average reflects a generally strong credit landscape, but scores vary significantly by age, with older generations having higher averages than younger ones. 

What income do you need for a $400,000 mortgage?

Lenders typically use a maximum debt-to-income (DTI) ratio of 43% to determine how much income you need to safely afford those payments. To reverse-engineer the required income, divide your total monthly obligations ($3,640) by 0.43. That gives you a gross monthly income of about $8,465, or $101,580 per year.

Can I afford a 400k house making 70k a year?

It's unlikely you can comfortably afford a $400k house on a $70k salary because standard affordability rules (like the 28/36 rule) suggest a budget closer to $210k-$300k, depending on factors like your down payment, credit, and existing debts. A $400k home would likely push your total monthly housing costs (mortgage, taxes, insurance) above the recommended 28-30% of your gross income, potentially leaving you "house broke". 

Can I buy a 300k house with 70k salary?

Yes, buying a $300k house on a $70k salary can be possible, but it's often tight and depends heavily on your credit score, debt, down payment, and local property costs (taxes/insurance). While some say you can afford $210k-$290k, others suggest $300k is within reach with good financial habits, potentially stretching your budget but requiring careful budgeting for monthly costs like taxes and insurance beyond just the mortgage payment. 

Why is my FICO score so much higher than Credit Karma?

Your FICO score is often higher than your Credit Karma score because Credit Karma uses the VantageScore model (typically VantageScore 3.0/4.0) with data from only Equifax & TransUnion, while FICO uses different, stricter algorithms and often incorporates data from Experian, plus there are many FICO versions lenders use, leading to score variations, with FICO being the industry standard lenders rely on more heavily. 

How do I see my true FICO score?

To get your accurate FICO Score, check with your bank/card issuer (like Capital One, Amex, BofA), as many offer free access to the FICO Score 8 they use; also get your free reports from AnnualCreditReport.com to find and fix errors, which directly impacts accuracy; and consider paying myFICO.com for direct access to all three bureaus' scores for the most comprehensive view, as lenders use different versions.