Licensed in the State of Florida.


FHA loan requirements

FHA loan requirements

July 21, 2014


FHA after bankruptcy

FHA after foreclosure

FHA after short sale


We hear it all the time!

What's the minimum credit score for an FHA loan?

The answer is. It depends on who you ask.

All the major banks Wells Fargo, Bank of America, Chase, Citigroup, etc. have minimum credit score requirements. When you apply for an FHA mortgage at a major bank and they tell you their minimum credit score requirement is 640. This does not mean that it's FHA's minimum credit score. It means that they are the bank's minimum credit score requirements.

After the financial crisis of 2008 all the major banks raised their standards for approving FHA loans. Because the banks make the rules for loans they will approve, they may require a minimum credit score of 640 for their loans. These guidelines are the bank's guidelines. What this means is, all the major banks including Wells Fargo, Bank of America, Chase, Citigroup, etc. banks make the rules for loans they will approve.

Mortgage World Home Loans is a licensed mortgage broker and will match you with the lender that will approve your FHA loan down to a 500 credit score.

New FHA loan requirements

January 20, 2010 - FHA announced a new policy to address risk.

FHA has changed the minimum credit score for new borrowers:

  • FHA requirements new borrowers will now be required to have a minimum credit score of 580 to qualify for 3.5% down payment
  • FHA loan requirements new borrowers with less than a 580 credit score will be required to put down at least 10%
  • This has allowed the FHA to better balance its risk and continue to provide financing for home buyers

August 15, 2013 - New borrowers may also be eligible for an FHA insured loan on a purchase transaction after 12 months from the completion, discharge, trustee's sale if the borrower meets the requirements for extenuating circumstances Economic Event.

Borrowers with a prior bankruptcy, foreclosure, deed-in-lieu, or short sale may be eligible for an FHA insured loan if the bankruptcy, foreclosure, deed-in-lieu, short sale was the result of a documented extenuating circumstance.

October 15, 2013 - New FHA does not require collection accounts to be paid off as a condition of mortgage approval. However, FHA does recognize that collection efforts by the creditor for unpaid collections could affect the borrower’s ability to repay the mortgage.

  • If evidence of a payment arrangement is not available, the lender must calculate the monthly payment using 5% of the outstanding balance of each collection, and include the monthly payment in the borrower’s debt-to-income ratio.

FHA loan requirements include a maximum debt to income ratio. When a borrower applies for an FHA mortgage, they are required to disclose all debts, open lines of credit, and all possible approved sources of regular income. Using this data, the lender and FHA can calculate the borrower's debt-to-income ratio.

  • Most lenders will limit maximum debt-to-income to under 50%.
  • FHA maximum debt to income ratio is 54.99%.
  • Manual underwriting maximum debt to income ratio is 43%.
  • First time home buyer.

Charge off accounts  - Collection accounts - Judgments


HUD homes for sale $100 down payment.

Apply Now!

Call us 888.958.5382


FHA purchase FHA refinance FHA 203k loan FHA cash out $100 down loan

FHA loan requirements - ‎FHA loan limits - ‎FHA loans - ‎FHA Streamline


We look forward to working with you.


We recognize the importance to you of keeping your information secure and confidential. We will not sell or share your personal information.



What's the minimum credit score needed to buy a house or refinance


FHA loans

FHA requires a minimum 500 credit score to buy a house or refinance

500 credit score


VA loans

VA requires a minimum 500 credit score to buy a house or refinance

500 credit score


USDA loans

USDA requires a minimum 580 credit score to buy a house or refinance

580 credit score


Fannie Mae

Fannie Mae requires a minimum 620 credit score to buy a house 

620 credit score


Freddie Mac

Freddie Mac requires a minimum 620 credit score to buy a house

620 credit score


HARP refinance

HARP requires no minimum credit score to refinance

No minimum credit score


Call Now, Our Staff is Available!

888.958.5382

Apply Now!