FHA Credit and Your FHA Loan
Take the Steps to Review Your Credit
FHA loans provide great assistance to many first time home buyers by offering mortgage loans with lower down payments. While this is a benefit for many people, recent changes in policy may have put the loans just out of reach for some would-be homeowners with questionable credit history.
Home buyers looking to take advantage of great FHA loan benefits should already know they need to establish the best possible credit rating. Applicants with a better credit rating increase their options for mortgage or refinance loans. In order to qualify for the low 3.5 percent FHA loan down payment, applicants will need a FICO score of at least 580. Those that don't meet that criteria will have to put a down payment of 10 percent on the mortgage they want.
While FHA loans are known as a great service for people looking for help buying a house, applicants can make the process even easier if they take steps toward ensuring their credit history is in tip-top shape. The agency advises prospective home buyers to approach FHA loans with their best possible credit history to eliminate any potential risk of not qualifying.
When the Federal Housing Administration announced rule changes to help strengthen finances and protect against risk, one of the biggest changes was requiring a minimum FICO score of 580 to qualify for the attractive 3.5 percent down payment on mortgage loans.
FHA Loan Articles
Mortgage News, FHA Credit Requirements, and Guidelines
Income and Debt Ratios for FHA Mortgages
What does a borrower needs to know when preparing to apply for an FHA mortgage? There is a list of items to pay attention to that does include FICO scores; you may find that lenders are looking for FICO scores averaging between 620 and 640.
Can I Use 401K Income to Qualify for an FHA Mortgage?
Many borrowers want to know if the income coming from 401K accounts can be used as part of the debt to income calculation. What does the FHA loan rule book say about using a 401K to qualify? Are there cases where 401K income can be used in eligibility calculations?
What You Should Know About Refinancing and FICO Scores
For borrowers with a home loan who are looking at refinance loan options, the FHA loan program offers several choices. What should you know about FHA loan FICO score requirements and related issues when considering your FHA refinance needs?
FICO Scores and Your FHA Mortgage
FHA single family home loans are used to buy owner-occupied residences. The FHA backs the mortgage loan, making it more attractive for the lender and easier to extend credit compared to the higher FICO score requirements of some conventional loans. But there can be confusion.
FHA Loan Rules: Credit Report Inquiries
Your loan officer is required to show on paper that a potential borrower can afford both monthly financial obligations owed currently, plus the amount of those financial commitments with the added the amount of a potential new monthly mortgage payment.