FHA minimum credit score 2017
FHA minimum credit score 2017 - FHA announced a policy change to address risk and strengthen finances. FHA has changed the minimum credit score for new borrowers:
- New borrowers will now be required to have a
minimum credit score of 580 to qualify for 3.5% down payment
- FHA loan requires new borrowers with less than a 580 credit score will be required to put down at least 10%
- FHA minimum credit score is 500
In the old days, FHA did not have a minimum credit score requirement.
FHA minimum credit score 2017
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.
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.
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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.
FHA minimum credit score
Bankruptcy
At least twenty four months must have elapsed since the discharge date of the borrower's Chapter 7.
Foreclosure
Foreclosure must have been resolved for at least 3 years with no late payments since the date of resolution.
Seasoning requirements are determined by the type of loan:
Government loan: Seasoning is determined by the date the claim was paid
Other than Government loan: 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.
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