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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 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 January 26, 2021
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.


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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 home buyers 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 home buyers, 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

FHA Home Loan Options for 2021

December 18, 2020 - If you are interested in buying a home in 2021, you have higher FHA home loan limits to look forward to. You also have a range of FHA home loan options you should seriously consider that can provide alternatives you might not be aware of.

Credit Repair Hacks for FHA Loan Applicants

December 10, 2020 - There are four credit repair hacks you can do ahead of your home loan. The key to getting these hacks right is to start as early as possible--at least one year--ahead of your home loan application. It’s never too late to start repairing your credit.

Refinance Loans to Remodel Your Home

December 1, 2020 - If you need to buy and remodel a home, the standard FHA mortgage isn’t as helpful as an FHA 203(k) Rehabilitation mortgage, which is available to help buy and repair or remodel a home with approved projects. However, your lender won't you act as your own contractor.

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.