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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

One-Time Close Construction Loans in Tennessee

August 3, 2022 - An important option to consider when looking to build  a new home in Tennessee is the VA / FHA One-Time Close construction loan. Zillow® reports the TN medium home value at the end of Q2, 2022 to be $299,000.  This is a 27.23% over the past year.

Factors That Influence Home Loan Approval

July 28, 2022 - What can help or hurt FHA loan approval? Knowing your lender’s needs when it comes time to approve your application can be a big help. You’ll make more informed choices about planning and saving for your mortgage based on these issues.

FHA or VA Construction Loans in California

July 26, 2022 - Building on your own lot with an FHA / VA / USDA One-Time Close construction loan is thriving in California. Zillow® reports the CA medium home value close to $799,000 for the period ending in Q2 2022, an increase of 23.49% in one year.

Interest Rates and FHA One-Time Close Construction Loans

July 25, 2022 - If you would rather build your home from the ground up than buy someone else’s dream home, you’ll need to be prepared for some extra costs. It can be more expensive to build rather than buy, but for some that extra money is worth the investment.

Shopping Around for an FHA Lender

July 24, 2022 - When it’s time to compare FHA lenders, no two financial institutions are exactly alike, and it is a smart idea to find out how they differ before you commit to one or the other. While all lenders may seem quite similar, where they differ matters.