frequently Asked Questions

A credit score is a number that shows how trustworthy you are with money.
Banks and lenders use this number to decide if they should give you a loan and what interest rate to give you. A higher score makes it easier to get a loan and with better rates. 

If you are new to the United States, you may not have a credit score yet. This is normal. To build credit, you can:

• Get a secured credit card
• Open a small credit-builder loan
• Use a credit card and pay it on time every month
• Ask a trusted friend or family member to add you as an authorized user on their credit card
   

With responsible use, you can start building a score in just a few months.

There are a few safe options:

• Many banks or credit card apps show your score for free
• You can check free scores on websites like Credit Karma or Credit Sesame
• A lender can provide the most accurate information as some lenders require a different type of credit score than shown on free websites.
   

Checking your own score does not hurt your credit.

 You can raise your score by:

• Paying every bill on time
• Keeping credit card balances below 30% of the limit
• Paying down debt
• Not applying for too many new cards
• Checking your report for mistakes and fixing them.

Even small steps can help your score grow over time.

In the United States, credit scores range from 300 to 850. Here’s what those numbers usually mean:

• 300–579: Poor (very difficult to get approved)
• 580–669: Fair (possible to get approved, but with higher costs)
• 670–739: Good (most buyers in this range get approved)
• 740–799: Very Good
• 800–850: Excellent
   

For home loans, lenders look for certain minimum scores:

• FHA Loans: Minimum 580 (some lenders accept 500–579 with a larger down payment)
• Conventional Loans: Minimum 620
• VA Loans: No official minimum, but most lenders want 620
• USDA Loans: Usually 640 or higher
• Down-Payment Assistance Programs: Many require 620–640
   

While you can still qualify with lower scores, having a score of 670 or higher generally makes approval easier and leads to better interest rates and lower monthly payments.

Yes, you can.
A score under 680 does not automatically mean you will be denied.
Many loan programs will approve buyers with scores:

• 620 and above (conventional loans)
• 580 and above (FHA loans)
• 520–580 in special situations
   

However, a higher score makes approval easier and your monthly payment lower.
If your score is under 680, a lender can help you understand the best loan options and how to improve it quickly. Contact us for a referral. 

The amount you need for a down payment depends on the type of loan you use. Many people think they need 20%, but that is not true. Here are common minimums:

• FHA Loan: As low as 3.5% down
• Conventional Loan: As low as 3% down (many first-time buyers qualify)
• VA Loan: 0% down for eligible veterans
• USDA Loan: 0% down for certain rural areas
• Down-Payment Assistance Programs: Help with part or all of your down payment
   

Many buyers in the U.S. purchase homes with 3%–5% down, not 20%.

Your monthly payment is based on several factors:

• Home price
• Loan amount (after your down payment)
• Interest rate
• Loan term (usually 30 years)
• Property taxes
• Homeowner’s insurance
• Mortgage insurance (required with low down payments)
   

Your lender will calculate your exact payment once they know your income, credit score, and loan program.

The best way is to talk to a lender and get a pre-qualification or pre-approval.
They will look at your:

• Income
• Debts
• Credit score
• Savings
• Loan options
   

This helps you understand the price range that fits your budget and what monthly payment is comfortable for you.

A quick rule many people use is the 28/36 rule:

• Keep your housing payment under 28% of your monthly income
• Keep all debts (car, credit cards, housing) under 36% of your income

But your lender can give you the most accurate number based on your situation.