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FHA advises prospective home buyers to approach FHA loans with their best possible credit history to eliminate any potential risk of not qualifying.

FHA Rates Near 50 Year Low!

Now is the time to drop the interest rate on your 30-year mortgage or refinance into a 15-year home loan.

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Are You Watching Your Credit Score?

NOTICE: Some FHA mortgage lenders are substantially raising FICO score requirements during the Coronavirus crisis, even though FHA minimums remain unchanged.


- Improving Your Credit Score Has Never Been More Important -

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

FHA Loan Tips for Improving Credit

Track Your Credit Score and Stay on Top of Problems

FICO Scores Influence How Much FHA Down Payment Is Required

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.

Whether you're looking for a loan to mortgage a new house or to refinance a house you already own, it makes the most sense open up all your options with an optimal credit rating. The FHA recommends having a satisfactory payment history of at least one year before applying for a loan.

Credit Tips for Your FHA Loan

Here are some tips to help you on your way:

  • Take a Close Look at Your Credit Reports
    You don't know what could be hurting your credit score unless you actually check. Get your credit reports from the three national credit bureaus--Experian, Equifax and TransUnion--at no cost and comb them over for anything suspicious or questionable.
  • Dispute Inaccuracies
    If you find errors on your credit report, notify the reporting bureau in writing so you have a record. Provide any additional records or evidence you have to support your dispute.
  • Find Professional Help
    The FHA recommends applicants with credit problems get help from a Consumer Credit Counseling program. A credit counselor can help you get back on track.
  • Bankruptcy / Foreclosure
    If you've suffered from a bankruptcy or foreclosure in the past few years, you might still be able to qualify for an FHA loan. Develop a satisfactory payment history, re-establish good credit and meet the other FHA requirements.

While your credit history is just one of the many factors that make up your eligibility for an FHA loan, it is no doubt one of the most important. Having a higher score not only helps you qualify, you can also benefit from the low 3.5 percent down payment on mortgage loans available to applicants with a FICO score over 580. FHA approved lenders don't take your credit history lightly, and neither should you.

Credit Scores for FHA Loans

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FHA Loan Articles and Mortgage News

FICO Scores and Home Loans: What You Need to Know

June 22, 2021 - If you don’t know the contents of your credit report, you aren’t ready to apply for a mortgage loan, an auto loan, or even a personal line of credit. Your lender will review not only your FICO score, but your credit activity for at least the last 12 months leading up to your loan application.

Five Down Payment Assistance Tips

June 19, 2021 - If you are considering an FHA mortgage but need down payment help, there are programs offered by state and local agencies that may be able to help. Not all of them meet FHA loan guidelines--you’ll need to make sure that the program you choose meets the sourcing requirements for the money.

FHA Mortgages vs. Fannie Mae Home Ready Mortgages

June 18, 2021 - When exploring home loan options, some borrowers want a loan that has the lowest upfront costs possible. This makes sense if money is tight, or when a borrower has goals for their money and a down payment would hurt those plans.

Home Loans And FICO Scores

June 9, 2021 - What do you need to know about home loans and FICO scores? To get started, it’s important to know what FICO score ranges are considered good, and how these ranges are viewed by lenders. Your credit scores matter, but how should they be interpreted?

Building Credit Ahead of a Home Loan Application

June 2, 2021 - Many first-time home buyers feel at a loss when it comes to working on their credit. Don’t apply for your first credit card and your first home loan in the same year. A lender will be looking at your credit habits for at least the 12 months leading up to your credit application.