2016 FHA Credit Score FHA announced a policy change to address risk and strengthen finances. FHA changed the minimum credit scores for new borrowers:
FHA makes the rules for loans they will insure and the minimum credit score to buy a house with an FHA loan is 500. In the old days, FHA did not have a minimum credit score requirement.
FHA minimum credit score for major banks
All the major banks Wells Fargo, Bank of America, Chase, Citigroup, etc. have minimum credit score requirements for FHA loans. When you apply for an FHA loan at a major bank and they tell you their minimum credit score requirement is 640. This does not mean that it's FHA's minimum credit score. It means that it is the bank's minimum credit score requirements.
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. What this means is that all the major banks including Wells Fargo, Bank of America, Chase, Citigroup, etc. make the rules for the loans they approve.
FHA credit score 2016
Mortgage World Home Loans is an online mortgage company specializing in FHA loans for first time home buyer.
Closing cost - FHA allows the seller to pay up to 6% of your closing cost.
If you are buying a $100,000.00 house FHA allows the seller to pay up to $6,000.00 for your closing cost. It must be in writing in the sales contract, "Seller will pay up to 6% of buyer's closing cost."
If you do not write it into the sales contract then you will be paying the closing cost. In the state of Florida closing cost for a $100,000.00 house average around $4,300.00 depending on taxes, insurance and who's paying the transfer tax and owner's title insurance.
By allowing the seller to pay for your closing cost you will decrease the amount of money required to buy a home. Buying a $100,000.00 property requires $3,500.00 down payment and if the seller pays up to $6,000.00 for your closing cost you will only need around $4,000.00 to buy a $100,000.00 in Florida.
Are you short funds to close? The FHA no closing cost loan allows all of your closing cost to be rolled into your loan including your appraisal fee, hazard insurance premium and even your escrow account.
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2016 FHA credit score
FHA Minimum Credit Score Needed
to Buy a Home or Refinance
FHA announced a policy change to address risk and strengthen finances. FHA changed the minimum credit scores for new borrowers:
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