FHA Credit Score To Buy A House

FHA Credit Score To Buy A House

FHA Credit Score To Buy A House

The lowest credit score to buy a home or refinance is 500. New requirements for both FHA and VA require a minimum FICO score of 500.

• Fannie Mae requires a minimum score of 620
  
• Freddie Mac requires a minimum score of 620
• FHA requires a minimum score of 500
• VA requires a minimum score of 500
• USDA requires a minimum score of 620

FHA requires a minimum down-payment of 3.50% for borrowers with a minimum credit score of 580. FHA requires a minimum down-payment of 10.0% for borrowers with credit scores below 580.

FHA loans have been helping people become homeowners since 1934. The FHA insures the loan, so you can get a better deal.

* Low down-payments

* Low closing costs

* Easy credit qualifying

FHA loans are continuing to support the nation's housing market recovery.

Verified Funds

Borrowers with credit scores above 580 may use their own funds, a gift from a family member, rent credit or borrowed. If you will be using your own funds for the down-payment you will have to provide two recent months statements showing the funds in your account.

If the down-payment will be a gift a signed gift letter will be needed from the giver. Ability to give the gift will also be needed. A statement from the giver's account will be needed showing the funds available. Any and all gift funds must be documented with canceled checks or wire transfer.

If your credit scores are below 580 borrower may use their own funds, a gift from a family member, rent credit or borrowed. If you will be using your own funds for the down-payment you will have to provide two recent months statements showing the funds in your account.

Credit

FHA announced a set of policy changes to strengthen the FHA. The changes announced are the latest in a series of changes enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.

The FHA has taken the following step:

• Update the combination of FICO scores and down payments for new borrowers
• New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program
• New borrowers with less than a 580 FICO score will be required to put down at least 10%
• FHA Credit Score To Buy A House 

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