How to qualify for FHA loan 2016

How to qualify for FHA loan 2016

New FHA policy requires a minimum credit of 500. In the old days FHA did not require any credit score. These changes went in to effect in 2010.

To buy a home you will need a minimum credit score of 500.

Borrowers with credit score above 580 require a 3.5% down payment. The funds can be the borrower's own funds or can be a gift from a family member. FHA allows the seller to pay 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. The funds can be the borrower's own funds or can be a gift from a family member. FHA allows the seller to pay up to 6% of the purchase price for your closing cost.

To refinance your mortgage you need a minimum credit score of 500.

Borrowers with a credit score above 580 can refinance up to a 97.5% loan-to-value on a rate and term refinance. And up to 85% cash out refinance with a credit score above 580.

If you have credit score below 580 new FHA changes require a maximum loan-to-value of 90% for a rate and term refinance. And up to 75% cash out refinance with credit score below 580.

FHA minimum credit score is 500. Most FHA lenders require a minimum credit score of 640, we don't!

Whether you're planing to buy your first home, refinance, lower your monthly payments, buy a second home, consolidate debt or get pre-approved for a mortgage. A perfect credit score is not needed for an FHA loan approval.

In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a for a conventional loan. Credit scores down to 500 are accepted if there are compensating factors that offset the credit risk.

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.

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