Question:

What credit rating do I need to get a good fixed rate home mortgage?

Answer:

Your credit rating has to be good for a nice fixed rate home mortgage. Borrowers with low FICO will have troubles qualifying for the best FRMs. On the whole, adjustable rate mortgages are much easier to obtain but longer term fixed rate mortgages are also easier to qualify for.

Good rates on a standard fixed rate home loan need high credit.

In general, FICO of 700+ will qualify a borrower for a decent 30-year conventional fixed rate mortgage loan with full documentation. Of course, the desired loan amount, the debt-to-income ratio are considered by the underwriter and you may not qualify for the loan amount you would like to get.

Due to the subprime lending collapse, subprime fixed rate home mortgage loans are not widely available at the moment. Currently, if you have great credit you can get a good rate FRM loan, but other than that borrowers may like to consider FHA loan programs, adjustable rate mortgages and 40- and 50-year fixed rate mortgages.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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