Minimum Credit Score 2018
First Time Home Buyer
Minimum Credit Score 2018 First Time Home Buyer
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.
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 a gift from a family member and a 6% seller's concession is allowed.
If you have credit scores below 580 new FHA changes require a 10% down payment. The funds can be a gift from a family member and a 6% seller's concession is allowed.
Apply for a FHA loan
online.
Minimum Credit Score 2018 First Time Home Buyer
FHA requires a minimum credit score of 500. There are no income limits like you may find with first time home buyer programs. However, there are limits on how much you can borrow.
- 203(b) FHA purchase program provides mortgages for home buyers to purchase a principal residence with a low down payment and with lower credit standards.
- 203(k) FHA purchase program
is for the rehabilitation and repair of single family properties.
Providing both the financing to purchase a property and the financing to
make repair. The program offers an important tool for expanding
home ownership opportunities.
FHA allows a home
buyer to make a down payment of 3.50% and a seller contribution of up to
6% for closing costs
with only a 580 minimum credit score. First time home buyer with credit scores below 580 must make a minimum 10.0% down payment of the purchase price and a
seller
concession of up to 6% to pay for closing cost is allowed.
What documentation will I need?
• Personal tax returns for the past 2 years with W2's
• Current pay stubs for the past month
• Bank statements for last 2 months (all pages)
• Latest retirement statement for each active account (all pages)
• Sales contract (purchase)
• Clear copy of Driver’s License (front and back)
• Clear copy of SS card (front and back)
Call us 888.958.4228
www.Mortgage-World.com 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.
We look forward to working with you.
FHA Minimum Credit Score Needed to Buy a House
On January 20, 2010 FHA announced a policy change to address risk and strengthen finances. FHA changed the minimum credit scores for new borrowers:
- New borrowers will now be required to have a minimum credit score of 580 to qualify for FHA's 3.5% down payment program
- New borrowers with less than a 580 credit score will be required to put down at least 10%
- This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well
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