FHA Mortgage Rates

FHA Mortgage Rates

FHA guidelines requires a minimum credit score of 500 for all loans.

FHA guidelines allows a borrower with a credit score of 580 to buy a home with only a 3.5% down payment. FHA guidelines allows a borrower with a minimum credit score of 580 to buy a home using their own funds for a down payment or the down payment funds can be a gift from a family member.

FHA guidelines allows a home buyer with a minimum credit score of 500 up to a 6% seller's concession to pay for closing cost. The seller's concession must be written into the sales contract.

Home buyers with a credit score below 580 are required to make a 10% down payment. FHA allows you to buy a home using own funds for a down payment or the down payment funds can be a gift from a family member.

Generally, a borrower who has made timely payments for the last 12 months serves as a guide and demonstrates their willingness to repay future credit obligations. New FHA Policy changes require minimum credit score to be 580 for 3.5% down payment. These credit score requirements went into effect in the spring 2010.

However, most individual lenders and banks will require credit scores higher than 640, we don't.

In fact, even if you have had credit problems, such as a bankruptcy, foreclosure, short sale, repossession, it's easier for you to qualify for an FHA loan than a for a conventional loan. Credit scores down to 500 are accepted if there are compensating factors that offset the credit risk.

What documentation will I need?

  • Personal tax returns for the past 2 years
  • Current pay stubs for the past month
  • Bank statements for last 2 months (all pages)
  • Latest retirement statement for each active account (all pages)
  • Sales contract (purchase)
  • Clear copy of Driver’s License (front and back)
  • Clear copy of SS card (front and back)
  • Addresses and loan information of other real estate owned (if any)

Today's FHA Mortgage Rates