Can I Buy a House with a 775 Credit Score?

A 775 credit score is considered excellent and will qualify you for the best mortgage rates and terms when buying a house. With a score of 775 or higher you’ll have a wide range of mortgage options to choose from.

What Credit Score Is Needed to Buy a House?

When applying for a mortgage loan, most lenders look closely at your credit score to evaluate your creditworthiness. In general, the higher your credit score, the better mortgage rate you can qualify for.

While there is no single credit score needed to buy a house, here are some general guidelines:

• Scores Below 620 It’s tough to get approved for a mortgage if your score is below 620, You may need to improve your credit first

• 620-679: You can likely qualify for an FHA or VA loan with scores in this range. Interest rates may be higher.

• 680-739: A good credit score range. You can qualify for conventional loans with potential for better rates.

• 740-850: An excellent credit score range. You’ll qualify for the very best mortgage rates and terms.

So if your credit score is 775, you are in fantastic shape when it comes to qualifying for a home loan. A score of 775 is considered “excellent” by lenders.

Why 775 is an Excellent Credit Score for a Mortgage

Here are some of the key benefits of having a 775 credit score when applying for a mortgage:

• You’ll qualify for the lowest mortgage rates. Interest rates decrease incrementally as your credit score rises. With a score around 775, you can expect to qualify for the very lowest rates available. Even a small rate difference can save you thousands over the life of your loan.

• You can choose from a variety of loan programs. From conventional to jumbo loans, a 775 credit score makes you eligible for any mortgage program. You’ll have your pick of options.

• You likely won’t need mortgage insurance. Most conventional loans allow you to avoid private mortgage insurance (PMI) if your credit score is 740 or higher. This can save you hundreds per month.

• Your loan is less risky for lenders. A 775 credit score proves to lenders that you are an extremely low-risk borrower. This makes them more willing to approve your loan application.

• You have negotiating power. With excellent credit, you can negotiate with lenders for lower rates, reduced fees, smaller down payments, and more favorable loan terms.

• The mortgage process will be smoother. Top credit means quicker approvals and fewer headaches like required documentation. Closing will be a breeze.

What Mortgage Programs Are Available with a 775 Credit Score?

With a 775 credit score, every type of mortgage loan is available to you. Here are some of the most common programs borrowers choose:

Conventional Loans

Offered by private lenders, conventional loans make up the majority of mortgages in the U.S. They come with strict qualification standards, but offer the best rates to borrowers with excellent credit. Popular options include 30-year and 15-year fixed rate mortgages.

FHA Loans

FHA loans are backed by the Federal Housing Administration and are a top choice for first-time home buyers. Their low down payment requirement (as little as 3.5%) makes them more accessible. FHA loans can still be a good option even with higher credit scores.

VA and USDA Loans

VA loans help military personnel and veterans buy homes with 100% financing. USDA loans assist low-income buyers in rural areas. While you likely wouldn’t need these programs given your high credit score, they are still available if desired.

Jumbo Loans

In expensive real estate markets, jumbo loans make it possible to buy higher-priced homes. A 775 credit score makes jumbo loan qualification seamless.

Credit Score Needed for Different Down Payments

Your down payment amount and credit score are closely linked when qualifying for a conventional loan. In general:

• 5-10% Down: Minimum credit score of 680
• 10-20% Down: Minimum credit score of 720
• 20%+ Down: Minimum credit score of 620

With an excellent 775 credit score, you qualify for the best mortgage rates at any down payment amount. You have the flexibility to put down as much or as little as you are comfortable with.

Can I Get the Best Mortgage Rates with a 775 Credit Score?

Yes – a credit score of 775 will qualify you for the very lowest mortgage and refinance rates available. According to recent data, here are the average 30-year fixed mortgage rates for different credit score tiers:

As you can see, a 775 credit score puts you in the top tier of mortgage rates. In fact, your rate may end up being even lower than the average for 760+ if you shop lenders and negotiate.

How to Maintain a 775 Credit Score

Once you’ve reached the enviable level of 775, you’ll want to keep it there. Here are tips:

• Make all payments on time. Set up autopay if needed.
• Keep credit card balances low. Below 30% is ideal.
• Don’t open too many new credit accounts at once.
• Check for errors on your credit report and dispute them.
• Consider requesting credit line increases for improved utilization.

Stick to those credit best practices and your 775 score will be rock solid when it comes time to buy a home.

The Bottom Line

A 775 credit score is considered excellent for qualifying for a mortgage loan. With a 775 FICO score, you can expect to get approved for top-tier mortgage rates reserved for the most creditworthy borrowers. Whether you want a conventional, FHA, or jumbo loan, your credit score makes you an ideal candidate in the eyes of lenders.