What Credit Score is Needed to Buy a House 2017

What Credit Score is Needed to Buy a House 2017

New FHA policy requires a minimum credit score of 500 to buy a home. 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.

Collection accounts

FHA 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.

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.

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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.

We look forward to working with you.

We look forward to working with you.

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