FHA Minimum Credit Score

FHA minimum credit score


Mortgage rates

FHA minimum credit score - FHA changed it's minimum credit score requirements. FHA now requires a minimum credit score of 500 to be eligible for a FHA loan.

The FHA has taken the following steps

  • 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 minimum credit score is 500

Collection Accounts 

FHA does not require that collection accounts be paid off as a condition of mortgage approval. Auto repossession, medical collection accounts, credit card collection account and any other collection accounts do not have to be paid off.

Collection accounts in the borrower’s credit history already results in lowering the credit scores used in the approval process and thus no action is required by the borrower.

Disputed Accounts

If the credit report reveals that the borrower is disputing any credit accounts or public records, the disputes must be resolved. FHA will not allow you to close on a loan with disputed accounts unless the disputed account has a zero balance; is marked as "paid in full" or "resolved"; or has both a balance less than $500.00 and the date of the dispute is more than 24 months old.

To get disputed accounts resolved and updated on your credit report go to www.annualcreditreport.com. Create a file for each credit bureau Equifax, Trans Union and Experian. When you create your file write down your file number and write down the phone number for the credit bureau.

Call each credit bureau and tell them you are no longer disputing any accounts on your credit report. Your credit report will be updated within 30 days.

Today’s historically low interest rates make now the perfect time to purchase a new home or refinance.

One of the most popular types of mortgages is the 30-year fixed-rate mortgage. This loan is usually the easiest to qualify for and provides the maximum interest deduction at tax time. The interest rate stays the same over the life of the loan which provides unchanging low monthly payments.


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