The minimum credit score for an FHA loan to buy a house is 500.

FHA rates are based on your score:

  • 720 - 850 Excellent                      *The lowest rates
  • 680 - 719 Good                            *Very good rates 
  • 679 - 580 Fair                              *Average rates
  • 579 - 500 Poor                             *Higher rates

Call for a free credit analysis 888.958.5382

FHA after bankruptcy   FHA after foreclosure   FHA after short sale

Credit score - On January 20, 2010 FHA announced a new policy to address risk. FHA changed the minimum credit score for new borrowers.

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

Debt-to-income ratio - April 1, 2013 FHA requirements include a maximum debt to income ratio. When a borrower applies for an FHA mortgage, they are required to disclose all debts, open lines of credit, and all possible approved sources of regular income. Using this data, the lender and FHA can calculate the borrower's debt-to-income ratio.

  • FHA maximum debt to income ratio can be over 55%
  • Manual underwriting maximum debt to income ratio is 40/50%

Charge off accounts  - Collection accounts - Judgments

Mortgage Insurance - On January 9, 2015 the Federal Housing Administration (FHA) announced the reduction of it's annual Mortgage Insurance Premium (MIP) rates.

Effective on or after January 26, 2015 FHA will reduce the premium from 1.35% to .85% a reduction of .5%.

Combined with low interest rates and the reduction of MIP rates means that it is a great time to buy a home or refinance your mortgage.

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Call us 888.958.5382, LLC is a licensed residential mortgage broker and will match you with the lender that will approve your FHA loan.

Call 888.958.5382

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