While the 580 FICO score minimum is a major factor in how an applicant will pay for a mortgage, your credit score is not the only thing the FHA takes into account.

FHA.com: Home Purchase and Refinance Loans

FHA Loan Programs for 2024

The most recognized 3.5% down payment mortgage in the country. Affordable payments w/good credit.

Are You Watching Your Credit Score?




- Improving Your Credit Score Has Never Been More Important -

FHA.com is a privately owned website, is not a government agency, and does not make loans.
FHA Home Loans

Choose a Loan Type

FHA.com is a privately owned website, is not a government agency, and does not make loans.

Higher Credit Helps You Get a Loan

Take Steps to Keep Your Credit Rating High

FICO Scores Over 580 Help Borrowers Qualify For FHA Loans

Homebuyers 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.

FHA loans are designed to help homebuyers, so these government-insured loans usually come with more lenient requirements than typical mortgages or refinancing terms from traditional lenders. While the benefits don't vary much between someone with good credit and excellent credit, there is a very noticeable margin for those with bad credit and average to good credit.

Why You Need a Better Credit Score

While the 580 FICO score threshold is a major factor in how an applicant will pay for a mortgage, your credit score isn't the only thing the FHA takes into account. Payment history, bankruptcies and foreclosures are also issues that the agency looks at. While these factors may hurt your credit score, they don't necessarily eliminate you from loan eligibility.

That doesn't mean, however, that you can neglect your credit. While the FHA is lenient enough to help those with bad credit ratings, they also require recent credit history to be in good standing.

Extenuating circumstances like job loss, injury or anything else that prevented you to pay in a timely manner can, and most likely will, be taken into account. However, if you have demonstrated you purposely neglected payments or your credit rating, your chances of qualifying for an FHA loan will be reduced.

Be Safe, Not Sorry With Your Credit

Obviously, it's better to have good credit than bad credit when applying for any loan. Don't take your credit history for granted, though, because you might find an error or inaccuracy that could hurt your chances of qualifying for an FHA loan. Instead of going through the headache of disputing your application with your agency and holding up the process, be proactive and make sure your credit score and ratings are where they should be before approaching the FHA.

Credit Scores for FHA Loans

SEE YOUR CREDIT SCORES   From All 3 Bureaus  

Do you know what's on your credit report?

Learn what your score means.


FHA Loan Articles and Mortgage News

FHA Home Loan Down Payments: What to Know Before You Buy

March 13, 2024 - FHA home loan down payments are typically lower than many conventional mortgage equivalents, especially if you can’t afford the 20% down needed to avoid conventional private mortgage insurance, which is required on a conventional mortgage.

Home Loan Interest Rate Facts

March 1, 2024 - Home loan interest rates are back in the 7% range, with dips back to the 6% range along the way. What do you need to remember in a time when the housing market is trying to improve but is hitting some rocky territory along the way? We cover some of the major issues in this article.

FHA Loan Requirements Can Be Confusing

February 28, 2024 - If you are new to FHA loans, their requirements can be confusing at first, at least until you are more familiar with the loan program and its rules. A glance at the FHA loan approval basics typically needs a bit of explanation, as we’ll discover in this article.

Construction Loan or Rehab Loan?

February 27, 2024 - If you have never bought or built a home, your options may initially seem confusing. The more you learn about different loan types and the application of those home loans, the more you realize you have a wealth of options depending on your goals and needs for the home.

Home Loan Scam Tactics You Should Know About

February 25, 2024 - Major lenders are warning home loan applicants about scams. These warnings are issued frequently. What makes the current round of warnings different and more urgent is the level of sophistication these swindles have reached recently.