FHA Credit Score Requirements 2017

FHA Credit Score Requirements 2017

FHA minimum credit score is 500.

New FHA policy requires a minimum credit score of 500 to buy a home or refinance. In the old days FHA did not require a minimum score. These changes went in to effect in 2010.

To buy a home or refinance you will need a minimum credit score of 500.

Borrowers with score above 580 require a 3.5% down payment. The funds can be a gift from a family member and up to 6% seller concession is allowed for closing cost.

If you have credit score below 580 new FHA changes require a 10% down payment. The funds can be a gift from a family member and up to 6% seller concession is allowed for closing cost. 12 months of on time rental history or on time mortgage payment history may be required for scores below 640.

FHA credit score requirements 2017

To refinance your mortgage you need a minimum credit score of 500.

Borrowers with a credit score above 580 can refinance up to a 97.5% loan-to-value on a rate and term refinance. And up to 85% cash out refinance with a credit score above 580.

If you have credit score below 580 new FHA changes require a maximum loan-to-value of 90% for a rate and term refinance. And up to 75% cash out refinance with credit score below 580.

Most lenders require a minimum credit score of 640 for a FHA loan, we don't.

Whether you're planing to buy your first home, refinance, lower your monthly payments, buy a primary residence, 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. Scores down to 500 are accepted if there are compensating factors that offset the credit risk.

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• FHA credit score requirements 2017

What documentation will I need?

• Personal tax returns for the past 2 years with W2's
• Current pay stubs for the past month
• Bank statements for last 2 months (all pages)
• Latest retirement statement for each active account (all pages)
• Sales contract (purchase)
• Clear copy of Driver’s License (front and back)
• Clear copy of SS card (front and back)

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