Did You Know?

FHA loans are one of the best options for young, first-time home buyers who have not had as much time to save for a large down payment or establish a high credit score.

Get an FHA Refinance Loan
Get an FHA Purchase Loan
Get an FHA Refinance Loan
Get an FHA Purchase Loan
Click to Start Your Refinance or Purchase Loan

FHA Credit Requirements and FICO Scores

FHA Credit Requirements and FICO Scores
The Federal Housing Administration has specific credit requirements and guidelines for borrowers looking to buy or refinance homes with an FHA loan. In addition to what FHA guidelines state, lenders may have more stringent requirements that may vary from one lender to another. They'll be looking at your FICO scores, credit history, and debt-to-income ratio, among other things.

While the FHA has set the minimum credit score at 500, most lenders that offer FHA loans typically require a minimum FICO score of 580 or higher to qualify for the 3.5% down payment option. Borrowers with FICO scores below 580 may still be eligible for an FHA loan, but may need to come up with a 10% down payment to get the loan.

Lenders will also review your credit history as an indicator of your past financial responsibility. A history of late payments, collections, or delinquencies can have a negative affect on your ability to qualify for an FHA loan. Generally, they'll probably be looking at the last two years of your credit history.

They'll also pull your credit report from the three major credit bureaus (Equifax, Experian, and TransUnion) to evaluate your credit history. It's important to review your credit report for accuracy and dispute any errors before applying for an FHA loan. 

FHA guidelines typically require borrowers to have a maximum debt-to-income ratio of 43%. This means that your total monthly debts, including your mortgage payment, should not exceed 43% of your gross monthly income.

Your mortgage provider may also consider your employment history, income stability, and overall financial stability when evaluating your creditworthiness. Try not to make big changes right before you apply for a home loan.

If you've had a bankruptcy or foreclosure in your financial history, there are waiting periods before you can qualify for an FHA loan. The waiting period varies based on the circumstances and the type of loan.

If you have a lower credit score or do not meet the FHA credit requirements on your own, you may be able to apply with a co-borrower who has a stronger credit profile. 

Since FHA loan requirements can change over time and lenders may tighten their own requirements during tough economic times, it's crucial to consult with an FHA-approved lender or visit the official FHA website for the most current information.


Keep Your Eyes on Your Loan Balance
Learn About FHA Loan Prepayments
Taking Out a Home Loan Makes You a Borrower
See Your Credit Scores From All 3 Bureaus
See Your Credit Scores From All 3 Bureaus

FHA Loan Articles

When not to Consider Refinancing a Home

There are plenty of reasons to delay plans to refinance a home. One reason has made big headlines. When borrowers face higher interest rates than originally approved for, that is a good reason to wait to refinance.

How FHA Construction Loan Draw Disbursements Work

When you are approved for an FHA One-Time Close Construction loan, you get a single loan that pays for both the costs to build the house, and serves as the mortgage. One application, one approval process, and one closing date.

Mortgage Rate Predictions for 2024

In the last days of November 2023, mortgage loan rates flirted with the 8% range but have since backed away, showing small but continued improvement. What does this mean for house hunters considering their options to become homeowners soon?

Is It Cheaper to Buy a Home With an FHA Loan or to Rent?

In May 2023, USA Today published some facts and figures about the state of the housing market in America. If you are weighing your options for an FHA mortgage and trying to decide if it’s cheaper to buy or rent, your zip code may have a lot to do with the answers you get.

Why Do FHA Loans Have Borrowing Limits?

FHA loan limits serve as a crucial mechanism to balance financial sustainability, regional variations in housing costs, and the agency's mission to promote homeownership, particularly for those with limited financial resources.

FHALoan.com is not a government agency. We do not offer or have any affiliation with loan modification, foreclosure prevention, payday loan, or short term loan services. Neither FHALoan.com nor its advertisers charge a fee or require anything other than a submission of qualifying information for comparison shopping ads. We do not ask users to surrender or transfer title. We do not ask users to bypass their lender. We encourage users to contact their lawyers, credit counselors, lenders, and housing counselors.

SecureRights Advertiser Contact Information