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Does your credit score affect getting a mortgage? It sure does. Here’s how and what to do about it.

Source: What your credit score means for your mortgage

When it comes to buying a house, your credit score is a lot like your old SAT score. A high one is a distinct advantage. A mediocre one isn’t the end of the world, because other factors matter too. But a very low score? Well … that’s a little harder to overcome. You might need a do-over.

Here’s the deal: your credit score—specifically your FICO score—is basically an assessment of how you handle debt. It tells lenders how dependable you’ll be at paying back a loan. That means your score can determine whether you’ll qualify for a mortgage at all, as well as which loan options might be available to you. And once you do qualify, it usually affects your interest rate, which determines…

KHC Loan Programs.

KHC offers two different funding sources: Secondary Market and MRB.

SECONDARY MARKET FUNDING SOURCE

• First-time and repeat homebuyers statewide
• 30-year fixed interest rate
• Principle residence ONLY
• Purchase Price Limit: $243,000
• Borrower must meet KHC’s Secondary Market Income Limits

Conventional No Mortgage Insurance Program

• Minimum credit score of 660
• 3 percent down payment and no up-front or monthly mortgage insurance
• All KHC DAPs applicable
• No minimum borrower contribution
• No reserves required

FHA

• Insured by the Federal Housing Administration
• 3.5 percent down payment
• All KHC DAPs applicable
• Upfront and monthly mortgage insurance
• Minimum credit score of 620

Two FHA Refinance Options (Available Only Through Secondary Market)

• Credit qualifying Streamline Refinance and Rate/Term Refinance
  • Insured by the Federal Housing Administration
  • Cash back to borrower not to exceed $500
  • Upfront and monthly mortgage insurance
  • Minimum credit score of 620

VA

• Guaranteed by the Veterans Administration for qualified military veterans

Source: Kentucky FHA HUD Homes for $100 Down