FHA minimum credit score 2016 - FHA announced a policy change to address risk and strengthen finances. FHA has changed the minimum credit score for new borrowers:
In the old days, FHA did not have a minimum credit score requirement.
FHA minimum credit score 2016
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.
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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FHA minimum credit score
At least twenty four months must have elapsed since the discharge date of the borrower's Chapter 7.
Foreclosure must have been resolved for at least 3 years with no late payments since the date of resolution.
Seasoning requirements are determined by the type of loan:
Government loan: Seasoning is determined by the date the claim was paid
Other than Government loan: Seasoning is determined by the date of sale the lender sold the property
FHA guidelines requires three year past from the date of sale of the property.
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