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What is the lowest FICO score that is needed for a FHA loan? Looking to buy ASAP but working on credit. We are in the high 500 range currently.

by kimberly210 from Lone Rock, Iowa. Mar 15th 2016 Reply


David Baker (David Baker)
#1 ranked lender in Iowa - 48 contributions

For minimum down payment requirement of 3.5% you need at least a 580 middle score from the three major bureaus. Feel free to reach out directly if you would like to cover your scenario in greater detail. All the best to you!

Mar 15th 2016
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Jim Schaefer (jschaefer@goldstarfinancial.com)
#63 ranked lender in Minnesota - 13 contributions

Hi Kimberly - most lenders will state you need a 580 credit score for FHA, which is true. However, the companies typically do not have the ability to control the loan and underwrite the file - they broker the loan out to a 3rd party lender. We have the ability to handle your file in-house. I'm happy to help you with any credit repair needs you have as well as get a plan in place so you are ready to purchase ASAP. Thanks,Jim

Mar 15th 2016
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,797 contributions

If credit scores were the only thing that was under consideration when determining one's eligibility, then the answer would be 500. FHA has a 500 minimum credit score requirement.. If your score is below 580, you will need 10% down.. Understand that FHA does not lend money.. they only insure loans against default. the lenders, or those with the $$$, will oftentimes have their own rules above what FHA calls for.. it's these "overlay's" that vary one lender to the other.. and for most, they will require 580 or above.. also understand that to determine eligibility, the lender needs to look at your complete loan profile.. not just a credit score.. having a score that low means that you have a majority of negative items.. BK? Judgment?, Foreclosure? Short Sale? Unpaid student loans? Unpaid taxes? Collections? etc, etc, etc.. you could have a 750 credit score, yet with one of these credit deficiencies, you still might be denied.. So if you really want to know if you qualify or not, then you're going to have to do it the ole fashioned way.. pick up the phone and contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Mar 15th 2016
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Christina Hayes (CreditRepairExpert)
#8 ranked lender in Tennessee - 68 contributions

Kimberly, FHA requires a 580 for the 3.5% down payment program. They can go lower, however the lower they go, the higher your down payment goes. You should take a good look at what you have going on with your credit. Best of Luck. Christina Hayes.

Mar 15th 2016
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