Can I Buy a House With a 645 FICO Score?

If your FICO score is 645, you have fair credit. This means you can still buy a house, but you may face some problems. The lowest score needed for a mortgage depends on the program, but lenders usually want scores of 620 or higher. With some planning and research, a 645 FICO score can still help you become a homeowner.

What Credit Score is Considered Fair?

The most commonly used credit scoring model, FICO, ranks credit scores from 300 to 850 Scores are grouped into the following ranges

• 800-850: Exceptional
• 740-799: Very Good
• 670-739: Good
• 580-669: Fair
• 300-579: Very Poor

So a 645 FICO score falls into the fair range. It’s below the average credit score of 711 for U. S. consumers. A 645 is still a good score, but it won’t get you the best loan rates and terms.

Is 645 a Good Credit Score to Buy a House?

Whether a 645 credit score is good enough depends on a few factors

• Type of mortgage – Government-backed loans like FHA, USDA, and VA have more lenient credit requirements than conventional mortgages.
• Down payment – A larger down payment can help compensate for a lower score.
• Debt-to-income ratio – Lenders look at your total monthly debt obligations along with your score.
• Individual lender requirements – Overlay guidelines may impose higher score minimums.

For most mortgages, a 645 is good enough, but you may need to put down more money and/or pay a higher interest rate. Conventional loans in particular may be challenging to obtain.

What is the Minimum Credit Score to Buy a House?

Here are the general minimum credit score requirements for popular mortgage programs:

• Conventional: 620
• FHA: 500 with 10% down, 580 with 3.5% down
• VA: Typically 580 to 620
• USDA: Typically 580 to 620
• Jumbo: 680

So government-backed loans provide more flexibility for lower scores. With FHA in particular, you may be able to buy with a 645 FICO and 3.5% down payment.

Tips for Buying a House With a 645 Credit Score

If your heart is set on buying a home soon, there are steps you can take to boost your chances:

• Save for a larger down payment – Putting down more upfront can help secure a loan.
• Lower your debt-to-income ratio – Pay down debts so you have lower monthly obligations.
• Add a co-borrower – Their higher score can help you qualify together.
• Improve your credit – Adding positive information can give your score a boost.
• Comparison shop with lenders – Discuss options to see who may approve your application.

It can be hard to buy a home with a 645 FICO score, but it is possible if you plan ahead. It’s important to talk to a lot of lenders and know all of your mortgage options.

How to Improve Your Credit Score Before Buying a House

If you have time before you need to buy, improving your 645 score can really pay off. Here are powerful ways to give your credit a boost:

• Pay down balances – Lower credit utilization immediately helps your scores.
• Become an authorized user – Get added to a partner or family member’s old account.
• Dispute errors – Fixing mistakes can bump up your score.
• Make on-time payments – Perfect payment history shows responsibility.
• Limit hard inquiries – Too many credit checks can lower your score.
• Monitor your credit – Regularly review reports for changes.

With diligent effort, you can potentially improve your credit enough to qualify for a conventional loan in 6 months or a year. A higher score unlocks better mortgage rates and terms.

The Takeaway

While lenders generally prefer credit scores of 620 and above, a 645 FICO is still fair. This makes buying a home possible, especially through government loan programs like FHA that offer more flexible credit requirements. Down payment size, debts, and individual lender overlays also play a role. With preparation and shopping around to find a lender willing to approve your application, homeownership can still be within reach.