The only catch is whenever you buy a home on a rented lot you typically need to be approved through the rental company and they often use credit scores. We didn’t have great credit and was fortunate enough to find a home on a half an acre of land in WV through a private seller.
The minimum credit score needed to purchase a home can be anywhere from 580 to 640 depending on the type of mortgage. Your credit score is one factor that can make or break your house hunting progress since it plays a big role in a lender’s decision making process.
Credit Guidelines Credit scores range from about 300 to 850. According to Freddie Mac and Fannie Mae, which purchase mortgages from banks and resell them to investors, a FICO score above 620 is.
The credit score needed to buy a house depends on the type of mortgage loan you’re applying for and your lender. While it’s possible to get a mortgage loan with bad credit, you typically need good or exceptional credit to qualify for the best terms.