Home Loans In Prescott, Arizona  

The city of Prescott is known for its beautiful weather and scenic views. With a population of around 46,000 people, Prescott is one of the smaller cities in Arizona, making it a great place to live, work, and even raise a family without breaking the bank. 

Besides the great weather and scenery, people are also attracted to Prescott’s real estate opportunities. The market has been on an upward trend over the last few years, and it doesn’t seem to be slowing down anytime soon. 

This is good news for those looking to buy a home in Prescott. But before you start shopping for a home for sale, it’s essential to understand one of the most crucial requirements for a home loan — credit score. A poor credit score can automatically disqualify you from some loans or result in higher interest rates and down payment requirements. 

Here’s what you need to know about the minimum credit score for a mortgage in Prescott, AZ.

Understanding The Minimum Credit Score For A Home Loan

Generally speaking, the minimum credit score for a home loan in Prescott is 620. This is the same as the national average. However, it still varies on the type of loan you’re looking to obtain. Here’s a more specific outlook for some of the most common types of home loans:

• FHA Home Loans

The U.S. government insures this type of home loan through the Federal Housing Administration (FHA). The FHA is responsible for ensuring that home buyers in the U.S. have access to financing. The minimum credit score for an FHA loan in Prescott is 580.

• VA Home Loans

Veteran Affairs (VA) home loans are available to active-duty military members, veterans, and their spouses. The VA doesn’t have a minimum credit score requirement, but most lenders will look for a score of at least 620.

• Conventional-Conforming Loans

Conventional-conforming home loans are not backed by the government and are therefore more accessible to a broader range of home buyers. 620 is the minimum credit score for a conventional loan, though a higher score is necessary to avoid higher interest rates and down payments. 

• USDA Guaranteed Home Loans

The United States Department of Agriculture (USDA) offers home loans to rural home buyers. These loans are designed to help low-income families buy homes in rural areas. Borrowers with a credit score of at least 640 can qualify for a USDA guaranteed loan, subject to other qualifying requirements.

• Jumbo Loans

Jumbo home loans are available to home buyers who need to finance more than the conventional loan limit. Because of the higher amounts involved, the minimum credit score for a Jumbo loan usually starts at 680.

Prescott, AZ Mortgage Lender

Capital Home Mortgage is your trusted mortgage lender in Prescott. Not only do we offer a wide range of home loan programs, but we also make sure to provide expert assistance every step of the way. We are direct lenders, so every aspect of the mortgage process is within our control —  from pre-qualification to closing.

You don’t need to jump through hoops to get a mortgage with us. Our experienced loan officers will work with you to ensure a simple, straightforward process and help you find your dream home in the shortest time possible. 

Start Your Mortgage Application In Prescott Today

Capital Home Mortgage is here to make your dream of homeownership in Prescott a reality. Simply call us at (480) 360-6650 to get started.