Credit score needed to buy a house 2016


FHA World - Credit score needed to buy a house 2016

Mortgage rates

The mortgage industry has changed dramatically in the last few years. In the old days obtaining an FHA loan was easy. Today, most lenders require a minimum credit score of 640 to qualify for a FHA loan.

It is important to understand that just because one lender will not qualify you for an FHA loan, it does not mean that another lender will not approve you.

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.

FHA World - Credit score needed to buy a house 2016

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.

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.

FHA World - Credit score needed to buy a house 2016

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%
  • FHA allows the seller to pay up to 6% for your closing cost
  • FHA minimum credit score is 500

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!

Call us 888.958.5382


We recognize the importance to you of keeping your information secure and confidential. We will not sell or share your personal information.


We look forward to working with you.

Understanding the Role of a Mortgage Broker for the Best Mortgage Rates in New Jersey

We look forward to working with you.

Image 12

Apply Now!

Call 800.516.9166

Email Us!


Recent Articles

  1. Best Mortgage Rates in New Jersey.

    Jun 01, 23 09:40 AM

    best mortgage rates
    Best Mortgage Rates in New Jersey. See if you qualify for the lowest mortgage rates available!

    Read More

  2. No Income Verification Mortgage Florida. No Income Documents Required.

    May 31, 23 10:59 AM

    Home no income 2
    A no income verification mortgage, is a type of home loan that allows borrowers to secure financing without providing traditional proof of income, such as pay stubs, W-2 forms, or tax returns.

    Read More

  3. FHA Minimum Credit Score Requirements in 2023: What You Need to Know

    Mar 02, 23 07:59 AM

    fha-minimum-credit-score-2023
    What you need to know about FHA minimum credit scores in 2023, including the minimum credit score requirements, why credit score is important, and how to improve your credit score to qualify for an FH…

    Read More

Minimum Credit Score Needed

to Buy a Home


FHA requires a minimum credit score of 500 to buy a house

Apply Now!

Collection accounts

A collection is minor in nature usually does not need to be paid off as a condition for loan approval

Bankruptcy

Chapter 7 Bankruptcy at least two years must have elapsed since the discharge date

Foreclosure

Foreclosure must have been resolved for at least 3 years 

  • Government loan: Seasoning is determined by the date the claim was paid
  • Loans other than Government: Seasoning is determined by the date of sale the lender sold the property

Short Sale

FHA guidelines requires three year past from the date of sale of the property


Call Now, Our Staff is Available

888-958-5382

Apply Now!