November 20, 2013
To buy a home you will need a minimum credit score of 500.
Apply for a FHA loan online.
New FHA policy requires a minimum credit of 500 to buy a house. FHA did not require any credit score before 2010.
Borrowers with credit score above 580 require a 3.5% down payment. The funds can be a gift from a family member and a 6% seller's concession is allowed.
If you have a credit score below 580, new FHA changes require a 10%
down payment. The funds can be a gift from a family member and a 6% seller's
concession is allowed.
Most lenders require a minimum credit score of 640. We don't.
FHA 2014 underwriting guidelines
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.
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.
Call us 888.958.4228
Mortgage World Home Loans 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.