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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.

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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

Credit Monitoring Is Your Early Warning System

October 7, 2020 - With credit monitoring you opt into a level of protection that can warn you if such issues become present in your credit report. But keep in mind that knowing is only part of the battle--it takes time to contest a credit report problem.

Buying or Building a Home: Credit Checklist

October 3, 2020 - Are you interested in buying an existing home or having one built for you on your own lot? Before you apply for a mortgage, there are some important credit issues you’ll want to address to improve your chances at home loan approval.

FHA Temporary Guidelines for Employment Verification to End Soon

September 29, 2020 - When the coronavirus pandemic began affecting America, federal agencies began establishing certain temporary guidelines to help employees, customers, and clients to continue having access to important services including FHA loans.

FHA and HUD Announce New FHA Home Loan Approval Rules

September 26, 2020 - The FHA and HUD have announced new guidelines for borrowers who are applying for FHA mortgages and have had previous mortgage forbearance. Since the start of the global pandemic, these agencies have offered borrowers mortgage relief to help offset new financial burdens.

FHA Loan Limits: Facts You Should Know

September 21, 2020 - What facts do you need to know about FHA home loan limits? Facts such as FHA loan limits may vary depending on county and that FHA mortgage limits are higher in high-cost areas like  California, New York, and Hawaii?