Shopping for a home and embarking on the financing process can seem stressful and overwhelming, especially for first time home buyers. Knowing the basics, such as the minimum credit score lenders are looking for, how much is needed for a down payment, what is a “good” debt-to-income ratio and how credit card debt factors into the equation are all great first steps to better navigate the home buying experience.
Working with a trusted lender is important as well. VSECU has been helping members in Vermont finance their homes for decades. From first homes to retirement homes and everything in between VSECU is here to help. For more information about qualifying for a home loan, we invite you to read this article from The Bridge in which VSECU’s Kathy Simanskas talks about what is needed to purchase a home.
What does it take to qualify for a loan to buy a house in Vermont today?
Posted by The Bridge on April 3, 2014 in 2014 Issues, April 3 2014, Features, News & Features
by Phil Dodd
Start by having a credit score above 620, which is the minimum level required by Fannie Mae and Freddie Mac’s automated underwriting model, according to Kathy Simanskas of Vermont State Employees Credit Union (VSECU). That credit score also comes into play when determining how much private mortgage insurance (PMI) will cost. “If someone is putting down less than a 20 percent down payment for a traditional mortgage, they will need PMI, and that can get very expensive for someone with a low credit score,” Simanskas said.