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Financing 101: Article 3 of 8

Several loan types are available for borrowers with a credit score of at least 680. Here are a few:

1. Conventional loans: These are loans that are not backed by the government and are typically offered by private lenders. A borrower with a credit score of 680 or higher may be eligible for a conventional loan, which usually requires a down payment of at least 3%.
2. FHA loans: These are loans that are backed by the Federal Housing Administration and are designed for borrowers with lower credit scores. However, a borrower with a credit score of 680 or higher may still be eligible for an FHA loan, which typically requires a down payment of at least 3.5%.
3. VA loans: These are loans that are backed by the Department of Veterans Affairs and are designed for veterans and their eligible family members. A borrower with a credit score of 680 or higher may be eligible for a VA loan, which usually requires no down payment.
   
4. USDA loans: These are loans that are backed by the United States Department of Agriculture and are designed for borrowers in rural areas. A borrower with a credit score of 680 or higher may be eligible for a USDA loan, which typically requires no down payment.
   
5. Jumbo loans: These are loans that exceed the limits set by Fannie Mae and Freddie Mac, which are the two government-sponsored entities that buy and sell mortgages. A borrower with a credit score of 680 or higher may be eligible for a jumbo loan, which typically requires a higher down payment and stricter underwriting standards.

It's important to note that each type of loan has its own specific requirements and eligibility criteria, so it's important to work with a lender who can help you determine which loan type is right for you based on your individual circumstances.