What credit score do you need to get a mortgage with Bank of America?
What credit score does Bank of America require for a mortgage? Bank of America requires a minimum credit score of 600 to qualify for a mortgage. That applies to VA and FHA loans. For a conventional loan from Bank of America, you'll need a credit score of at least 620.
How Can I Qualify for a Bank of America Mortgage? You'll need a FICO credit score of at least 600 and a maximum debt-to-income ratio of 55% to qualify for a mortgage with Bank of America. However, each loan product may have its own requirements. There's no minimum loan amount for most loans.
Bank of America offers mortgages nationwide. Because of its competitive rates, convenient application options and low down payment loan products, Bank of America has earned a spot on several of our best mortgage lender lists: Best Mortgage Lenders. Best Mortgage Lenders For First-Time Homebuyers.
Conventional loan | Credit score: 620
To qualify for a conventional loan, you'll need a credit score of at least 620, though some lenders may choose to approve conventional mortgage applications only for borrowers with credit scores of 680 and up.
Credit score and mortgages
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
Bank of America requires a minimum credit score of 600 to qualify for a mortgage. That applies to VA and FHA loans. For a conventional loan from Bank of America, you'll need a credit score of at least 620.
What score model was used to calculate my score? Your score in Online Banking is a FICO® Score 8 based on TransUnion Data to manage your account and that is what Bank of America shares with you.
| Rank | Company | Headquarters |
|---|---|---|
| 1 | PennyMac Loan Services LLC | Westlake Village, CA |
| 2 | United Wholesale Mortgage | Pontiac, MI |
| 3 | loanDepot | Foothill Ranch, CA |
| 4 | Newrez LLC | Fort Washington , PA |
Rocket Mortgage.
Still the biggest player, Rocket originated 464,000 loans worth $127.6 billion in 2022, according to HMDA data. That's a sharp drop from the boom year of 2021, when Rocked made more than 1.2 million loans worth $340 billion.
| Mortgage | Interest Rate | Points |
|---|---|---|
| 30-Year Fixed-Rate | 5.625% | 0.671 |
| 30-Year Fixed Jumbo | 4.75% | 0.826 |
| 15-Year Fixed-Rate | 4.625% | 0.379 |
| 15-Year Fixed Jumbo | 4.50% | 0.942 |
What salary do you need for $250000 mortgage?
Based on these figures and the 28% rule, you would need to earn about $66,903.57 per year to afford a $250,000 home with a 20% down payment — or about $81,171.43 per year to afford it with no down payment.
The required salary can vary depending on certain factors. In low rate environments with large down payments, it can be as low as $45,000 per year. However, when taking into account the cost of Private Mortgage Insurance (PMI), it could increase to as much as $95,000 per year.
FHA Loans. The minimum down payment to buy a home with an FHA loan is just 3.5 percent of the home's purchase price. That means the down payment for, say, a $250,000 home would be $8,750 with this type of loan.
It depends on the type of mortgage you're seeking: Many loans vary when it comes to the credit score needed to qualify. Generally speaking, you'll likely need a score of at least 620 — what's classified as a “fair” rating — to qualify with most lenders.
Federal Housing Administration (FHA) loans need at least a 580 FICO Score with at least a 3.5% down payment (which amounts to $10,500 on a $300,000 home). Conventional loans require a minimum FICO® Score of 620 along with a 3% down payment (which amounts to $9,000 on a $300,000 home).
| Credit score | Interest rate | Total interest paid |
|---|---|---|
| 760-850 | 3.065% | $106,085 |
| 700-759 | 3.283% | $114,654 |
| 680-699 | 3.456% | $121,546 |
| 660-679 | 3.666% | $130,021 |
Once you submit the preapproval form, Bank of America will do a soft inquiry of your credit, meaning that they'll take a quick peek at your current credit health. Because it's not a hard inquiry, it will not show up on your credit report or have a negative impact on your credit score.
Bank of America (an FHA-approved lender) offers these loans, which are insured by the FHA .
Government-backed loan options, such as FHA, USDA and VA loans, are typically the easiest type of mortgage to get because they may have lower down payment and credit score requirements compared to conventional mortgage loans.
You need a credit score of 750 or higher for the best Bank of America credit card offers, though other options are available for people with lower scores. For example, it is possible to get approved for certain Bank of America credit cards even if you have bad credit.
Do banks use TransUnion or FICO?
The credit score used in mortgage applications
While the FICO® 8 model is the most widely used scoring model for general lending decisions, banks use the following FICO scores when you apply for a mortgage: FICO® Score 2 (Experian) FICO® Score 5 (Equifax) FICO® Score 4 (TransUnion)
While most lenders use the FICO Score 8, mortgage lenders use the following scores: Experian: FICO Score 2, or Fair Isaac Risk Model v2. Equifax: FICO Score 5, or Equifax Beacon 5. TransUnion: FICO Score 4, or TransUnion FICO Risk Score 04.
- Better: Best for Completely Digital Application Process.
- Guaranteed Rate: Best for Competitive Interest Rates.
- PNC: Best for Ease of Access.
- Ally: Best for Fast Preapproval.
- LoanDepot: Best for Refinancing a First-Time Home-Buyer Loan.
Conventional Mortgages
Conventional mortgages are the most common type of mortgage. That said, conventional loans may have different requirements for a borrower's minimum credit score and debt-to-income (DTI) ratio than other loan options.
