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The FHA usually requires two lines of credit for qualifying applicants. An FHA loan might make the difference between owning your dream house comfortably and turning it into a financial nightmare.

FHA Loan Programs for 2022

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

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


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

Credit Requirements for FHA Loans

Good Credit History Makes it Easier to Qualify

FHA loans provide great assistance to many first-time homebuyers 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.

Credit History and Score Requirements

FICO Scores

For those interested in applying for an FHA loan, applicants are now required to have a minimum FICO score of 580 to qualify for the low down payment advantage, which is currently at around 3.5 percent.

If your credit score is below 580, however, you aren't necessarily excluded from FHA loan eligibility. Applicants with lower credit scores will have to put down a 10 percent down payment if they want to qualify for a loan.

So if you're planning to buy a house, and your credit score doesn't meet the minimum, you should weigh the advantages and disadvantages of putting down a larger down payment or using those funds to try and improve your credit score first.

Benefits of an FHA Loan

The reason why FHA loans are so popular is because borrowers that use them are able to take advantage of benefits and protections unavailable with most traditional mortgage loans. Loans through the FHA are insured by the agency, so lenders are more lenient. Here are a few benefits you can enjoy with an FHA loan:

  • Easier to Qualify
    While most loans exclude applicants with questionable credit history and low credit scores, the FHA makes loans available with lower requirements so its easier for you to qualify.
  • Competitive Interest Rates
    You've heard the horror stories of subprime borrowers who couldn't keep up with their mortgage interest rates. Well, FHA loans usually offer lower interest rates to help homeowners afford housing payments.
  • Lower Fees
    In addition to lower interest rates, you can also enjoy lower costs on other fees like closing costs, mortgage insurance and others.
  • Bankruptcy / Foreclosure
    Just because you've filed for bankruptcy or suffered a foreclosure in the past few years doesn't mean you're excluded from qualifying for an FHA loan. As long as you meet other requirements that satisfy the FHA, such as re-establishment of good credit, solid payment history, etc., you can still qualify.
  • No Credit
    The FHA usually requires two lines of credit for qualifying applicants. If you don't have a sufficient credit history, you can try to qualify through a substitute form.

For many homebuyers, using an FHA loan can really make the difference between owning your dream house comfortably or turning it into a financial nightmare. The FHA provides a wealth of benefits for applicants that qualify, so make sure you're making full use of them.

Credit Scores for FHA Loans

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FHA Loan Articles and Mortgage News

Help for First-Time Homebuyers

November 19, 2022 - FHA home loans are for many different kinds of borrowers including those who have never owned a home before, those who want to buy and renovate, those who want manufactured homes, or condos.

FHA Loan Approval Changes Could Help First-Time Borrowers

November 16, 2022 - The FHA and HUD announced changes to FHA loan approval procedures for first-time homebuyers. The changes essentially give a participating FHA lender the ability to consider qualifying positive rental payment history as a factor in loan approval.

New FICO Score Rules Could Change the Game for Some Homebuyers

November 11, 2022 - The Federal Housing Finance Agency or FHFA has announced major changes coming for FICO 10T and VantageScore 4.0, both of which can be used by lenders to approve borrowers for future Fannie Mae and Freddie Mac loans

Buying a Home With an FHA Loan Using a Cosigner

November 8, 2022 - The house hunter who is worried they may not be able to qualify for a home loan on their own may feel the need to add a cosigner or co-borrower. Others may be interested in buying a home with a significant other or spouse and will have a co-borrower to share the loan with. 

Home Price Increases Beginning to Slow

October 31, 2022 - If you want to buy or build a home with an FHA home loan in the last quarter of 2022, you’re considering your options at a time when the price increases seen earlier in the year are finally starting to slow down after sustained upward movement for the better part of the year.