620 credit score FHA - We hear it all the time!
What's the minimum credit score for an FHA loan?
The answer is.
The minimum credit score for an FHA loan is 500.
FHA requires a minimum credit score 580 to qualify for their 3.5% down payment program. Borrowers with credit score below 580 are required to make a 10% down payment.
Credit Score - FHA does not require a credit score to qualify for a loan. Borrowers with no credit score can qualify with 3.5% down payment.
FHA allows borrowers with a credit score and limited trade lines to qualify for an FHA loan.
Disputed Accounts - If the credit report reveals that the borrower is disputing any credit accounts or public records, the disputes must be resolved.
FHA will not allow you to close on a loan with disputed accounts unless the disputed account has a zero balance; is marked as "paid in full" or "resolved"; or has both a balance less than $500.00 and the date of the dispute is more than 24 months old.
Collection Accounts - FHA does not require you to pay off collection accounts. Medical collection accounts, auto repossessions, credit card collection account and any other collection account do not have to be paid off.
Foreclosure - To be eligible for a FHA loan 3 years must have past from the date the bank sold the property.
Seasoning requirements is determined by the type of loan:
A borrower whose previous residence or other real property was foreclosed on or has given a deed-in-lieu of foreclosure within the previous three years is generally not eligible.
Short Sale - To be eligible for a FHA loan 3 years must have past from the date of sale. If your mortgage payments were in default at the time of the short sale FHA requires you to wait 3 years before you can qualify for a new loan.
Today’s historically low interest rates make now the perfect time to purchase a new home or refinance.
One of the most popular types of mortgages is the 30-year fixed-rate mortgage. This loan is usually the easiest to qualify for and provides the maximum interest deduction at tax time. The interest rate stays the same over the life of the loan which provides unchanging low monthly payments.
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620 Credit Score FHA Florida, 620 Credit Score FHA Florida
On January 20, 2010 FHA announced a policy change to address risk and strengthen finances. FHA changed the minimum credit scores for new borrowers:
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