Quantcast

Know Your FICO Score: Applicants who fall below the 580 score will have to put down a 10 percent down payment in order to qualify for an FHA mortgage loan.

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.

FHA Rates for December 1, 2020
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 -

Get started one
Get started two
Get started three
Get started four
FHA.com is a privately owned website, is not a government agency, and does not make loans.

Choose a Loan Type

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

Identify and Fix Credit Report Errors

Things to Do Before Applying for an FHA Loan

Identify and Fix Credit Report Errors

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.

Know Your FICO Score

Applicants who fall below the 580 score will have to put down a 10 percent down payment in order to qualify for an FHA mortgage loan. For many applicants hovering just below that threshold, this policy change may serve as a great opportunity to take close look at their credit report and improve it.

The FICO score is actually comprised of your credit scores from the three national credit bureaus--Experian, TransUnion and Equifax. If your FICO score is just below the FHA limit, you should take the proper steps to check your credit report with the three agencies.

How to Check Your Credit Report

There are many ways people can check their credit scores. There are many online resources for people wishing to identify where they stand with lenders. Once you've gotten your report from the three bureaus, carefully examine your credit history for anything out of the ordinary, such as unauthorized loans taken out in your name, incorrect late payment records or anything that seems questionable, no matter how minor you think it is.

While your credit reports and credit score are what lenders use to judge your reliability in paying back loans, errors in your reports can happen. Make sure they aren't hindering you and your life's plans.

Correct Errors as Soon as Possible

The longer you wait to correct your credit history, the more potential damage errors can do. Prevention is key, so if you don't use a credit monitoring service, you should consider one. If you do find any errors, send a letter to the bureau that reported it and clarify with them why you think it is incorrect. Be sure to provide proof and any other documentation that will help your claim.

If you're already in the process of applying for an FHA loan, notify your lender of your dispute with your credit report as well because your credit score indicates your creditworthiness. It never makes sense to suffer at disadvantages that were the result of something you didn't do.

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.


GET STARTED

FHA Loan Articles and Mortgage News

Buying a Home? Use These Credit Resources to Prepare

November 30, 2020 - From the simple act of reviewing your credit scores all the way to getting an appointment with a local housing counselor to discuss how to properly get ready for your mortgage application, there are a variety of options to help you prepare for your loan.

Prequalifying for an FHA Mortgage

November 23, 2020 - Getting prequalified is an initial step toward the loan. You are not committing to the mortgage yet, just exploring your options. You’ll want to have the general information about your income, the amount of debt you carry, your credit scores, and other details.

Mortgage Loan Income Guidelines: What You Need To Know

November 22, 2020 - FHA loan rules include instruction to your loan officer about how to process your employment information and also includes guidelines about how much time in the job market is required in order for you to be seriously considered as a home loan applicant.

Which Matters More, FICO Score or Credit Report?

November 20, 2020 - When you apply for an FHA mortgage (or any other type of home loan) you might wonder which factor the lender relies on more to approve or deny your loan--the overall contents of your credit report, or your FICO scores specifically? Which one does the lender rely on more?

Do Bankruptcies, Foreclosures, or Short Sales Affect Home Loan Chances?

November 19, 2020 - In the era of coronavirus, everyone will experience financial hardship at some point. But how you weather these problems can affect your future home loan plans and it’s good to have a contingency plan in case you run into trouble paying your bills.