2016 credit score needed to buy a house

2016 credit score needed to buy a house


FHA allows a home buyer to make a down payment of 3.5% and a seller contribution of up to 6% for closing costs with only a 580 minimum credit score. First time home buyer with credit score below 580 must make a minimum 10% down payment of the purchase price and a seller concession of up to 6% to pay for closing cost is allowed.

FHA requires a minimum down payment of 3.50% of the purchase price. The funds may be the borrower's own funds, a gift from a family member, rent credit or borrowed. FHA regulates some of the closing costs associated with a FHA loan.

New 2016 credit score rules

New 2016 credit score - FHA announced a policy change to address risk and strengthen finances. FHA has changed the minimum credit score for new borrowers:

  • FHA requirements new borrowers will now be required to have a minimum credit score of 580 to qualify for 3.5% down payment
  • FHA loan requirements 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

FHA makes the rules for loans they will insure and as of December 29, 2015 the FHA minimum credit score for a loan approval is 500. In the old days, FHA did not have a minimum credit score requirement.

New FHA loan requirements 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.

New FHA loan requirements 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.

Apply Now!

Call us 888.958.4228

Application

Please note that all fields followed by an asterisk must be filled in.

Call us 888.958.4228

FHA purchase FHA refinance FHA 203k loan FHA cash out $100 down loan

FHA loan requirements - ‎FHA loan limits - ‎FHA loans - ‎FHA Streamline

Apply Now

Call us 888-958-5382


www.MORTGAGE-WORLD.com LLC is an online mortgage company specializing in FHA loans for first time home buyers.


We look forward to working with you.

LOGO
Image 12

Apply Now!

Call 800.516.9166

Email Us!


Recent Articles

  1. Minimum Credit Score FHA Loan 2024 FL

    Feb 26, 24 08:56 AM

    blog.png
    Minimum credit score FHA loan 2024. Minimum credit score is 500. Credit score above 580 require a 3.5% down payment. Credit scores below 580 10% down payment.

    Read More

  2. NJ Mortgage, Mortgage Rates NJ, Mortgage Refinance NJ, NJ Home Buyer

    Feb 22, 24 06:39 PM

    Blog 1
    NJ Mortgage, Mortgage Rates NJ, Refinance Mortgage NJ, New Jersey Mortgage Rates, NJ First Time Home Buyer Mortgage, NJ Cash Out Refinance Mortgage.

    Read More

  3. NJ Refinance Closing Cost

    Feb 22, 24 06:37 PM

    Blog 1
    NJ Refinance Closing Cost, Lowest Refinance Closing Cost in New Jersey, Refinance Closing Cost in NJ, Mortgage Closing Cost, Refinance Closing Cost, NJ

    Read More


LOGO

New Jersey Location

Call Now, Our Staff is Available!

800.516.9166

Z1.png

Minimum credit score needed to buy a house


Apply Now!

FHA

Requires a minimum credit score of 500 to buy a home

FHA minimum

credit score 500

VA

Requires a minimum credit score of 500 to buy a home

VA minimum

credit score 500

Fannie Mae

Requires a minimum credit score of 620 to buy a home

Fannie Mae minimum

credit score 620

Freddie Mac

Requires a minimum credit score of 620 to buy a home

Freddie Mac minimum

credit score 620


Call Now, Our Staff is Available

888-958-4228

Apply Now!