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What is the minimum score needed for a FHA loan?

by cwil25971 from , California. Jul 5th 2016 Reply


Al Hensling (alhensling)
#406 ranked lender in California - 12 contributions

We currently offer FHA with FICO's as low as 580.

Jul 5th 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,924 contributions

FHA allows for scores down to 500, but 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 makes lending different, one lender to the other.. and for most they will want to see a 620 or above.. some will go to 600, 580, and some even lower, but understand, the lower the score, the more strict the guidelines and few that apply actually get approved.. Also understand that for FHA, if your score is below 580, you will need a minimum of 10% down.. Additionally, you need to understand that it takes much more than a credit score to obtain financing.. I've seen borrowers with a 750 credit score get denied, so unless you meet ALL eligibility requirements.. including the minimum credit scores, you wont get financed.. for this reason, I suggest you 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

Jul 5th 2016
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Scott Fix (ScottFix)
#1329 ranked lender in California - 184 contributions

William hit the nail on the head. FHA is an insurer of loans, thus it is up to each individual lender to allow for credit score variations. Some will allow lower scores, but will scrutinize the process much more closely to make sure the borrower is otherwise creditworthy. Additionally, below a middle credit score of 580 and the 3.5% down payment goes up to 10%. Go to http://www.fha.com/fha_credit_requirements That website offers some easy to understand info about FHA. When you look for a loan, find a local professional to work with rather than applying over the internet. Ask friends etc for recommendations of someone they have used recently. Get in front of someone and ask lots of questions. They earn their money by providing you with ample and accurate information!! All the best, Scott.

Jul 5th 2016
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,522 contributions

FHA says you can be as low as 500, or as low as 580 with 3.50% down. Sounds nice, but FHA doesn't do loans. Lenders do, and most lenders consider anyone below 640 to be too much risk. A few lenders will allow a 620, and even fewer will claim to allow a 580 score. The reality is if your score is that low, there are probably other factors credit related that will still get you denied. You are better off to work on credit and try in the future than trying to find someone willing to work with low scores today.

Jul 6th 2016
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