First time home buyer 2016 -The mortgage industry has changed dramatically in the last few years. In the old days obtaining an FHA loan was easy. Today, most lenders require a minimum credit score of 640 to qualify for a FHA loan.
After the financial crisis of 2008 all the major banks raised their standards for approving an FHA loan. 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.
First time home buyer 2016
FHA minimum credit score is 500. New FHA policy requires a minimum credit of 500 to buy a home or refinance. In the old days FHA did not require any credit score. These changes went in to effect in 2010.
Borrowers with credit score above 580 require a 3.5% down payment. The funds can be the borrower's own funds or a gift from a family member. FHA allows the seller to up to 6% of the purchase price for your closing cost.
If you have credit scores below 580 new FHA changes require a 10%
down payment. All funds can be the borrower's own funds or a gift from a family member. FHA allows the seller to up to 6% of the purchase price for your closing cost.
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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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.
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First time home buyer Florida 2016
On January 20, 2010 FHA announced a policy change to address risk and strengthen finances. FHA changed the minimum credit scores for new borrowers:
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