Mortgage 2016

Mortgage 2016

What credit score is needed for a mortgage

• FHA  minimum credit score is 500
  
• VA minimum credit score is 500 
  
• Fannie Mae minimum credit score is 620
  
• Freddie Mac minimum credit score is 620
• HARP refinance no minimum credit score required
• FHA streamline refinance no minimum credit score required

FHA announced a policy change to address risk and strengthen finances. FHA has changed the minimum credit score for new borrowers:

• New borrowers will now be required to have a minimum credit score of 580 to qualify for 3.5% down payment
  
• FHA loan requires new borrowers with less than a 580 credit score will be required to put down at least 10%
• FHA minimum credit score is 500
  

In the old days, FHA did not have a minimum credit score requirement.

FHA minimum credit score

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.

• If evidence of a payment arrangement is not available, the lender must calculate the monthly payment using 5% of the outstanding balance of each collection, and include the monthly payment in the borrower’s debt-to-income ratio.

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 loan requirements - ‎FHA loan limits - ‎FHA loans - ‎FHA Streamline

Mortgage World Home Loans of New Jersey, L.L.C. is an online mortgage company specializing in FHA loans for first time home buyers. To buy a home with 3.5% down payment and a minimum credit score of 580 using an FHA loan, apply now.

We look forward to working with you.

We look forward to working with you.

Mortgage 2016 Florida