FHA Guidelines and how you can get your FHA loan approved today
The credit score requirements for FHA loans depends on which FHA mortgage product you’re looking at and which FHA lenders you’re dealing with. Usually, to get the absolute best financing on a typical new home purchase, the buyer should have a credit score of 580 and higher. Buyers with credit scores between 500 and 579 are, according to the current FHA mortgage guidelines, “limited to 90 percent LTV”.
Applicants who have a minimum decision credit score of less than 500 are not eligible for an FHA loan. Technically those with credit scores of 500 or better are eligible for FHA loans with 100% financing with no down payment required when using the FHA 203(h), Mortgage Insurance for Disaster Victims. FHA Streamline Refinance is another great option.
According to the current FHA mortgage guidelines, your down payment can be as low as 3.5% of the purchase price. Some of the closing costs and/or fees can be included in the loan or eliminated with other types of concessions. This is available for FHA loans on 1-4 unit properties. Keep in mind this is the minimum down payment and there are other factors that can determine your down payment amount such as:
- Credit score and overall credit profile and pattern.
- Your monthly income compared to your monthly debt.
* Home loans for poor credit are also available with strict credit criteria and down payment & income guidelines.
* If you are unable to get approved for your FHA-backed mortgage or other home loan, we have partners and FHA lenders that offer Mortgage Loan Preparation. This program will allow you to become eligible in a very timely manner.