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what is the minimum required credit score for fha loan with 3.5% down

by dtaunt_796_762 from Alexander City, Alabama. Feb 4th 2013 Reply


Steven Ceceri (123LoanYes)
#12 ranked lender in Rhode Island - 723 contributions

There are lenders that go down to 580, but very few and with many restrictions. Your goal should be to obtain a 620 FICO, but a 640 FICO would be best suited to get you the best options and pricing. I'm happy to help if you have any credit situations that may be holding down your score. I am able to originate loans throughout the United States as a Direct Lender, so please feel free to reach out directly if you'd like some guidance! Thank you!

Feb 4th 2013
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

FHA does not have a minimum credit score requirement... they do say however that if your score is below 580, you will need to put 10% down.. 640 is the benchmark for most lenders, however, there are some that go down to 500.. The guidelines are very strict, and most that apply don't qualify, however it does exist... Also, understand that the lender will go by the credit report that they run, not the score that you get for free on the internet.. when a mortgage company runs your credit, the scoring model used is based on the likelihood of you defaulting on a mortgage.. so the credit scores can be dramatically different... 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. 480-287-5714 WilliamAcres.com

Feb 5th 2013
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Kimberly Lawson (kilawson)
#55 ranked lender in Ohio - 150 contributions

I agree with my co-heart here. Most of your big bank and retail lenders are going to require a minimum of 640 score. Which is why I would recommend you find a local mortgage banker or broker who will have add'l resources available. They should have resources available to go down to 530 some as low as 580 or even some with 620 and the majority will have down to 640 only. So, it'll be a needle in the haystack yet you will find them. If they say they can't tell you without pulling your credit, hang up. They should be able to tell you how low of a score they will work with. Best of luck to you in your search!! I only lend in Ohio however if someone else is reading this message here is the required licensing and contact information required: Kimberly Lawson Kimberly.Lawson@fpfmail.com http://kimlawsonloanofficer.com NMLS: 5601 OH.LO.004495.000 First Priority Financial, Inc. 748 N Court St Ste 201 Medina, OH 44256 MBMB.850147.001 NMLS: 3257

Feb 4th 2013
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Steve Azarch (sazarch)
#18 ranked lender in Tennessee - 93 contributions

A lot of lenders have a minimum score of 640 for a FHA loan but there are some lenders that will go low as 580 but the rate and discount could get pricey. My company lends in Alabana but our minimum score for FHA loans is 640.If you are interested, please contact me and I will put you I touch with one of our branches.

Feb 4th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,784 contributions

Officially, FHA will insure a loan with a score as low as 580. But, most lenders will have noting to do with anyone with a score lower than 640. If your score is lower than 640, it would be wise to work on improving the score, then applying. www.FHA-Streamline-Refinance-MN.com

Feb 5th 2013
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Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

FHA guidleines will go as low as 580. However, most banks will NOT go that low. Our minimum credit score for FHA loans is 640.

Feb 5th 2013
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Anthony Piccone (apiccone)
#97 ranked lender in New Jersey - 17 contributions

We offer loans to borrowers with scores down to 580 unfortunately we are not able to lend in the Great State of Alabama. Shop around there are folks who do them, be prepared to pay higher then market rate due to add ons and risk factors for low scores. Also be prepared to have to provide more documentation then normal, a longer process etc. It is feasible to get done if you are willing to put in the time and effort. As everyone has stated you should optimally strive to achieve and maintain a minimum score of 640 or better.

Feb 5th 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions

Confirming what some above have said, 580 is the minimum score with 3.5% down. Lower scores will require a larger downpayment. Realistically you will have trouble finding a lender that will go below 600 and could still get you approved. even 600-620 is difficult. If you are at 620 or higher you will have several lenders to choose from.

Feb 5th 2013
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Ray Hazucka (r.hazucka@mybbmc.com)
#64 ranked lender in Illinois - 36 contributions

We would need a credit score of 620.

Feb 5th 2013
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Andrew Alfonso (CashCow)
#43 ranked lender in Florida - 271 contributions

I can do 560 all day long. Very possible. www.doubleamortgage.com

Feb 5th 2013
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

as many have already said. most lenders want 640 but you can find lenders that will take in the low 500's generally they will require compensating factors like larger down payment, low debt ratio's,etc.

Feb 5th 2013
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