FHA Credit Score Requirements Florida 2016

FHA Credit Score Requirements Florida 2016


After the credit crisis of 2007-2008 qualifying for a mortgage became a lot harder. If not for FHA many borrowers would not qualify for a mortgage. What makes FHA different than a conventional loan is the FHA will approve you and give a better interest rate with a lower down payment even if you have a low credit score.

When you compare FHA vs. conventional loans FHA loans win the down payment race hands down. FHA loans only require a minimum down payment of 3.5 percent of the purchase price versus a conventional loan requiring between 5% to 20% down payment with a minimum credit score of 620.

New FHA collection account guidelines

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.

Bankruptcy, Foreclosure and Short Sale

At least two years must have elapsed since the discharge date of the borrower and / or spouse's Chapter 7 Bankruptcy, according to FHA guidelines.

Foreclosure must have been resolved for at least 3 years with no late payments since the date of resolution.

FHA guidelines lets you qualify for a loan after three years from a short sale. FHA guidelines requires three year past from the date of sale of the property. If at the time of short sale your mortgage payments were not late for the previous 12 months there is no waiting period.

FHA Back to work Program

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.

New 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 Credit Score Requirements Florida

FHA continuing to support the nation’s housing market recovery.


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What's the minimum credit score needed to buy a house


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FHA loans

FHA requires a minimum 500 credit score to buy a house

500 credit score


VA loans

VA requires a minimum 500 credit score to buy a house or refinance

500 credit score


Fannie Mae

Fannie Mae requires a minimum 620 credit score to buy a house 

620 credit score


USDA loans

USDA requires a minimum 580 credit score to buy a house or refinance

580 credit score


HOMEPATH

HOMEPATH requires a minimum 620 credit score to buy a house

620 credit score


Freddie Mac

Freddie Mac requires a minimum 620 credit score to buy a house or refinance

620 credit score


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