Low credit score? Don’t count home buying out just yet — in these five towns, at least

September 12, 2018 - 2 min read

Where low credit buyers can buy a home

Credit definitely plays a huge role in someone’s ability to get a mortgage, but according to a new study, location does, too. In fact, in some cities, an overwhelming share of home buyers have a credit score of 649 or less.

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Low credit? No problem

According to new data from Realtor.com, a perfect credit score isn’t necessary for buying a home. In many cities, even a less-than-fair one will do.

In Charleston, West Virginia, for example, nearly 40 percent of all home buyers have a 649 FICO score or lower. That’s likely due to the abundant inventory in the area.

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Margo Teeter, an agent with Old Colony Realtors, says that area has a “buyer’s market” and “motivated sellers.” The average home price in Charleston is just $147,300.

Other cities where a large share of buyers have 649 credit scores or lower are Clarksville, Tennessee; Corpus Christi, Texas; Lakeland, Florida; and Augusta, Georgia.

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No questionable credit here

The South might be friendly to buyers with questionable credit, but in markets across the North and West, FICO requirements tend to be much higher.

In Santa Cruz, California, only a mere 4 percent of borrowers have a 649 score or lower. And though the area’s median price of $936K might play a role, second-ranking Fargo, North Dakota, is actually quite affordable. Despite boasting a median list price of just $257,050, only 5 percent of the town’s borrowers have a score under 649.

Other cities that are out of reach for low-credit borrowers include Ann Arbor, Michigan; Durham, North Carolina; Boulder, Colorado; Madison, Wisconsin; Honolulu; Minneapolis; Boston; and Provo, Utah.

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Aly J. Yale
Authored By: Aly J. Yale
The Mortgage Reports contributor
Aly J. Yale is a mortgage and real estate writer based in Houston who has contributed to Forbes and worked for organizations such as The Dallas Morning News, PBS, NBC, and Radio Disney.