What's the minimum credit score for an FHA mortgage?
The answer is. It depends on who you ask.
All the major banks 1st National Bank of South Florida , 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 mortgages. 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 1st National Bank of South Florida, Wells Fargo, Bank of America, Chase, Citigroup, etc. banks make the rules for loans they will approve.
Mortgage World Home Loans
Mortgage World Home Loans is a mortgage company licensed in the state of Florida and offers home loans in Florida. Mortgage World Home Loans is an online mortgage company specializing in FHA loans for first time home buyers:
FHA loans have been helping people become homeowners since 1934. A perfect credit score is not needed for an FHA loan approval. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to get an FHA loan than a conventional loan.
FHA allows a home buyer to make a down payment of 3.50% and a seller contribution of up to 6% for closing costs with only a 580 minimum credit score. Home buyers with credit a score below 580 must make a minimum 10.0% down payment of the purchase price and a seller concession of up to 6% to pay for closing cost is allowed.
The funds may be the borrower's own funds, a gift from a family member, rent credit or borrowed. FHA regulates some of the closing costs associated with a FHA loan.
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What's the minimum score needed to buy a house or refinance
FHA requires a minimum 500 credit score to buy a house or refinance
VA requires a minimum 500 credit score to buy a house or refinance
USDA requires a minimum 580 credit score to buy a house or refinance
Fannie Mae requires a minimum 620 credit score to buy a house
Freddie Mac requires a minimum 620 credit score to buy a house
HARP requires no minimum credit score to refinance
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