FHA Mortgage Lenders Credit Requirements

The Better Your Credit History The Easier To Qualify

FHA Mortgage provide great assistance to many FHA mortgage applicants by offering mortgage loans with lower down payments. While this is a benefit for many FHA mortgage applicants with previous bad credit histories including bankruptcy and foreclosures allowing some would-be homeowners with questionable credit history to qualify for an FHA mortgage Today!

FHA Mortgage Payment History and Credit Score Requirements

FHA mortgage approvals are based on a payment history model. For FHA mortgage applicants interested in applying for an FHA Mortgage, applicants are now required to have a minimum FICO score of 580 middle credit to qualify for the low down payment, which is currently at 3.5% of the purchase price.

If your credit score is below 580 credit score, however, you can still qualify for an FHA mortgage! FHA mortgage applicants with lower credit scores will have to put down a 10% percent down payment if they want to qualify for an FHA mortgage loan.

So if you’re thinking about applying for an FHA mortgage, and your credit score doesn’t meet the minimum credit scoring criteria, you should weigh the advantages and disadvantages of putting down a larger down payment or using those funds to pay down revolving credit cards that count for about 35% of your credit score.

FHA Mortgage Lenders Advantages That Only Come With FHA!

The main reason that FHA Mortgage loans are so favorable for first time buyer is because borrowers that use them can take advantage of benefits and protections not available with most traditional mortgage loans. Loans through the FHA are insured by the agency, so FHA mortgage lenders are more lenient. Here are a few advantages you can enjoy with an FHA Mortgage:

  • Bad Credit FHA Mortgage Approvals- Under the proper conditions qualified FHA mortgage applicants can purchase a home with 3.5% down with a min 580 fico. And 10% down with a 500+ fico score!
  • Lower Fee+ Lower Down payment With FHA Mortgage-In addition to lower interest rates, you can also enjoy lower costs on other fees like closing costs, mortgage insurance and others.
  • Way 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.
  • Lowest Interest Rates-You’ve heard the horror stories of subprime borrowers who couldn’t keep up with their mortgage interest rates. Well, FHA Mortgage usually offer lower interest rates to help homeowners afford housing payments.
  • Bankruptcy / Foreclosure FHA Mortgage Approvals-Just because you’ve filed for bankruptcy or even foreclosure does not mean your disqualified for an FHA Mortgage. 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 FHA Mortgage Approvals-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 FHA mortgage applicants, using an FHA Mortgage can really make the difference between owning a home or continuing to rent. The FHA provides an incredible opportunity for FHA mortgage applicants that qualify. Everyone should be taking advantage of this awesome program!

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