FHA Loan Requirements Credit Score 2016

FHA loan requirements credit score - FHA allows borrowers with scores above 580 to make a 3.5% down payment and up to 6% seller concession to purchase a home.

Borrowers with credit score above 580 will require a minimum 3.5% down payment. The down payment funds can be the borrowers own funds or a gift from a family member. FHA mortgage allows the seller to pay up to 6% of your closing cost.

If your credit score is below 580 new FHA mortgage changes require a 10% down payment. The down payment funds can be the borrowers own funds or a gift from a family. FHA mortgage allows the seller to pay up to 6% of your closing cost.

Collection Account  -A collection is minor in nature usually does not need to be paid off as a condition for loan approval. It is stated as such in FHA mortgage guidelines. Any judgments will have to be paid in full prior to closing. Borrowers who are delinquent on any federal debt, such as tax liens, student loans, etc., are not eligible.

Bankruptcy - At least two years must have elapsed since the discharge date of the borrower and / or spouse's Chapter 7 Bankruptcy, according to FHA guidelines.

Foreclosure - Foreclosure must have been resolved for at least 3 years with no late payments since the date of resolution.

Short Sale - FHA guidelines lets you qualify for a loan after three years from a short sale. FHA guidelines requires three year past from the date of sale of the property.

What documentation will I need?

• Personal tax returns for the past 2 years
• Current pay stubs for the past month
• Bank statements for last 2 months (all pages)
• Sales contract
• Clear copy of Driver’s License (front and back)
• Clear copy of SS card
• FHA loan requirements credit score 500

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