FHA Credit Score Below 640


FHA credit score below 640 - We hear it all the time!

What's the minimum credit score for an FHA loan?

The answer is. It depends on who you ask.

After the financial crisis of 2008 all the major banks raised their standards for approving FHA loans. Because the banks make the rules for loans they will approve, they may require a minimum credit score of 640 for their loans. These guidelines are the bank's guidelines. What this means is, all the major banks including Wells Fargo, Bank of America, Chase, Citigroup, etc. banks make the rules for loans they will approve.

All the major banks Wells Fargo, Bank of America, Chase, Citigroup, etc. have minimum credit score requirements. When you apply for an FHA mortgage at a major bank and they tell you their minimum credit score requirement is 640. This does not mean that it's FHA's minimum credit score. It means that they are the bank's minimum credit score requirements.

FHA makes the rules for loans they will insure and as of November 18, 2013 the FHA minimum credit score for a loan approval is 500. In the old days, FHA did not have a minimum credit score requirement.

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.

FHA loan requirements 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.

FHA loan requirements - 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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Mortgage World Home Loans is an online mortgage company specializing in FHA loans for first time home buyers. To buy a house 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.

FHA credit score below 640, FHA credit score below 640 Florida



What's the minimum score to buy a house or refinance


FHA loans

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

FHA requires a minimum credit score of 500 to buy a house or refinance.

VA loans

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VA requires a minimum credit score of 500 to buy a home or refinance.

  • 100% financing available for Veterans!

Fannie Mae

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Fannie Mae requires a minimum credit score of 620 to buy a home or refinance.

Freddie Mac

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Freddie Mac requires a minimum credit score of 620 to buy a home or refinance.


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