FHA allows a home buyer to make a down payment of 3.5% and a seller contribution of up to 6% for closing costs with only a 580 minimum credit score. First time home buyer with credit score below 580 must make a minimum 10% down payment of the purchase price and a seller concession of up to 6% to pay for closing cost is allowed.
FHA requires a minimum down payment of 3.50% of the purchase price. 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.
January 20, 2010 - FHA announced a new policy to address risk.
FHA has changed the minimum credit score for new borrowers:
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.
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.
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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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