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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 2023

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

FHA Purchase Loans: Buying a House in a Tough Market

March 18, 2023 - Some potential borrowers are confused by the economic reports from other sectors, wondering why in a time of inflation, people are spending money on travel and dining out even as they contemplate whether or not to buy a home this year.

What to Do When Mortgage Rates Are Rising

March 13, 2023 - Many believe that the Fed’s ongoing efforts to tame inflation are squarely to blame for the rise in mortgage rates. The Fed does not actively set mortgage loan interest rates, but those rates are affected by Fed actions such as increasing the costs of lending money.

FHA Loan Approval: Why Credit History Matters

March 7, 2023 - It’s easy to assume that FICO scores are a lender's number one factor in approving a home loan. But FICO scores are just one factor the lender considers, along with your debt ratio, verifiable income, and employment history.

FHA Home Loan Approval and Your Annual Income

March 5, 2023 - What does it take to be approved for an FHA home loan? Your participating lender will review your FICO scores, debt repayment history, and how effectively you use your credit. But one important factor in FHA loan approval not mentioned above? Your annual income.

FHA Loans and Rising Mortgage Rates In 2023

March 1, 2023 - In late February 2023, CNN.com reported mortgage rates had risen for the third week in a row, putting interest rate averages squarely in the mid-six percent range. CNN reports that a year prior, the fixed interest rate on a 30-year mortgage was closer to 4%.