Can I Buy a House With a 645 FICO Score?

A FICO score of 645 falls in the fair credit range, which means it is possible to buy a house with this score, but you may face some challenges While the minimum score needed depends on the mortgage program, lenders generally prefer scores of 620 and above With some preparation and shopping around, a 645 FICO can still make homeownership attainable.

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. While not ideal for the best loan rates and terms, a 645 is still a workable score.

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.

So while a 645 meets the baseline for most mortgages, you’ll likely need to put more money down 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.

While buying with a 645 FICO presents challenges, it’s possible with preparation. Shopping around with lenders and understanding all your mortgage options is key.

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.