There are several levels of mortgages. You may have heard of "subprime" from the movie The Big Short. Subprime means exactly what it says....it's below optimal conditions and they charge higher interest rates to give you a loan.

To be in the "prime" category, you will need at least a 660 FICO score to get a mortgage through a traditional lender.

If you do find yourself in the subprime area, you can take either work on your credit score, or apply to the FHA for a loan. The FHA currently has a minimum score of at least 580 for the low downpayment of 3.5%. Anything below that, you will need to put 10% down, which can be a lot of cash for folks to come up with.

Mortgage rates are tied to the "Prime" rate of the US. This is set by the government and has been at very low levels since the 2008 banking and housing crisis. That means, that money is "cheaper" to borrow, as the overall interest rates are lower for everyone.

Therefore, if you are thinking about buying a home now can be a great time to buy IF your financials are in decent shape or your credit score is close to 660 and above.

If you're thinking of buying a home soon but need to work on your credit a bit to get the best rates, contact us at Ascension Credit Services. We not only can help your credit, we work with several excellent mortgage lenders to get you the best rate possible.