If you’re looking to purchase a home, you’ll need to understand credit score requirements from your lenders. Norcom Mortgage is one of the many lenders available who have their own set of credit score requirements to meet. Knowing what these are is essential if you want to secure a loan and purchase the home of your dreams.
What is Norcom Mortgage?
Norcom Mortgage is a mortgage lender based out of Connecticut and Rhode Island. Since 1987, they have been providing home loans to individuals and families looking to purchase a home. Norcom Mortgage is a direct lender, which means they underwrite, fund and service their own loans. This also means that they are able to provide competitive rates and flexible terms.
What Are Norcom Mortgage Credit Score Requirements?
Norcom Mortgage credit score requirements depend on the type of loan you are looking for. Generally, Norcom Mortgage requires a minimum credit score of 620 for conventional loans, 580 for FHA loans, and 660 for VA loans. However, some loans may require a higher credit score, depending on the type of loan, the amount of the loan, and other factors.
Conventional Loans
A conventional loan is typically the most common type of loan and is typically obtained through a bank or other financial institution. Conventional loans may require a higher credit score than other loan types, with Norcom Mortgage requiring a minimum score of 620. This is typically due to the fact that these loans have less risk since they are not backed by the government.
FHA Loans
FHA loans are government-backed loans, meaning they are insured by the Federal Housing Administration. These loans usually have more flexible requirements than a conventional loan, including a lower credit score requirement. Norcom Mortgage requires a minimum credit score of 580 for FHA loans.
VA Loans
VA loans are loans issued by the Department of Veterans Affairs and are designed to help veterans purchase homes. These loans are backed by the government and typically have lower interest rates and more flexible requirements than conventional loans. Norcom Mortgage requires a minimum credit score of 660 for VA loans.
What Other Factors Affect Norcom Mortgage Credit Score Requirements?
In addition to the type of loan you are looking for, other factors can affect Norcom Mortgage credit score requirements. These can include the amount of the loan, the loan-to-value ratio, and your debt-to-income ratio. The higher the amount of the loan, the higher your credit score will need to be. The same is true for your loan-to-value ratio, which is the amount of the loan compared to the value of the home. Lastly, your debt-to-income ratio, which is the amount of your debt compared to your income, will also affect Norcom Mortgage credit score requirements.
Conclusion
Norcom Mortgage credit score requirements are essential to understand if you are looking to purchase a home. The type of loan, the amount of the loan, the loan-to-value ratio, and your debt-to-income ratio can all affect the requirements. Generally, Norcom Mortgage requires a minimum credit score of 620 for conventional loans, 580 for FHA loans, and 660 for VA loans. However, some loans may require a higher credit score, depending on the type of loan, the amount of the loan, and other factors.
