FHA loan programs for bad credit Florida

FHA loan programs for bad credit Florida

Qualifying for an FHA loan with bad credit

After the credit crisis of 2008 qualifying for a mortgage became a lot harder. If not for FHA many borrowers would not qualify for a mortgage. What makes FHA different than a conventional loan is the FHA will approve you and give a better interest rate with a lower down payment even if you have a low credit score.

When you compare FHA vs. conventional loans FHA loans win the down payment and credit score race hands down. FHA loans only requires a minimum down payment of 3.5 percent of the purchase price with a 580 credit score versus a conventional loan requiring between 5 to 20 percent down payment with a minimum 620 credit score.

FHA loan policy about credit score for new purchase home loans.

The lowest credit score to buy a house or refinance your mortgage is 500. These new requirements for both FHA and VA went into effect in 2010.

• 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 580
• Portfolio requires a minimum score of 640

FHA loan programs for bad credit Florida

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.

New FHA loan requirements 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.

Credit score

New FHA announced a policy change to address risk and strengthen finances. FHA has changed the minimum credit score for new borrowers:

• FHA requirements new borrowers will now be required to have a minimum credit score of 580 to qualify for 3.5% down payment
  
• FHA loan requirements new borrowers with less than a 580 credit score will be required to put down at least 10%
• This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well
• HUD homes for sale in Florida
• FHA loan credit score standards

FHA loan programs for bad credit Florida

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