Cut-off Score
Categories: Metrics
If the 2008 financial crisis taught us anything, it’s that it’s probably wise to not sell a house to someone with no income, no job, and no assets. But the “NINJA” loans became the best way to feed the mortgage beast.
It’s probably a good idea to ensure that people have a good credit history as well. Which is why most (responsible) lenders set a minimum credit score required to purchase a home. That cut-off score could be 600; it could be 640. It just depends on the lender and what sort of risk they're willing to accept.
So if you're sitting around 580, you might want to pay off some debt. Or maybe call creditors and have some terrible debt taken off your credit report.
Otherwise, you'll probably be renting for a while.