Minimum Credit Scores for FHA Loans. January 5, 2017 - Because of changes in legislation, lending requirements and related issues, FHA regulations and underwriting requirements are subject to change from time to time.
https://www.fha.com/fha_article?id=200
Standard FHA-insured mortgages require the home buyer to put up a down payment of at least 3.5 percent of the purchase price. This is one of the lowest down payment levels available for mortgages. To get an FHA loan with a 3.5 percent down payment, the home buyer must have a FICO credit score of at least 580. HUD increased the minimum score for a minimum down payment FHA loan from 500 to 580 in January 2010. Approved FHA loan home buyers with credit scores below 580 are required to make a down payment of 10 percent or more of the home's purchase price.
http://homeguides.sfgate.com/fha-minimum-credit-score-required-7402.html
Those with scores between 660 and 759 can still qualify for a decent loan rate, but anything below will result in interest rates that are at least two percentage points higher than the most creditworthy tranche. Those with the worst credit scores can expect to pay at least four percentage points higher in interest.
http://homeguides.sfgate.com/should-credit-score-obtain-home-loan-3278.html
Most borrowers will also have to pay monthly insurance premiums, which were actually reduced in January 2015 for 30-year fixed-rate mortgages. For a 30-year loan with a down payment of less than 5%, your premiums will be 0.85% (down from 1.35%) of the outstanding balance each year. That cost is typically divided into 12 monthly payments and added to your mortgage payment. That's $850 per year, or about $70 per month, per $100,000 of loan balance.
http://www.interest.com/fha-loans/news/how-to-get-an-fha-loan/
Credit Score Effects on Mortgage Rates. Bankrate.com has compiled a table that illustrates the effects of credit score on mortgage rates. To qualify for the lowest interest rate on a conventional 30-year loan, a potential borrower should have excellent credit, with a 760 or above credit rating.
http://homeguides.sfgate.com/should-credit-score-obtain-home-loan-3278.html
Those with credit scores between 500 and 579 are, according the the FHA guidelines, limited to 90 percent LTV. Applicants who have a minimum decision credit score of less than 500 are not eligible for FHA mortgages. Those with credit scores of 500 or better are eligible for 100% FHA loan financing with no down payment required when using the FHA 203(h), Mortgage Insurance for Disaster Victims.
https://www.fha.com/fha_article?id=200
Nevertheless, according to FHA policy, a minimum score of 580 is required for a 3.5% down payment, and in order to buy a home with a score lower than this, you will be required to come up with a down payment of 10%. In 2012, the FHA loan refinance minimum credit was of 580, in the case of a 97.5% rate and 85% cash out on refinance. Likewise, the 580 credit score down to 530 are permitted only with a lower loan, and the FHA has taken a series of steps that are mentioned below.
http://marybaldwinhomes.com/minimum-credit-scores-for-fha-loans-in-2013/
FHA loans have been helping people become homeowners since 1934. How do we do it? The Federal Housing Administration (FHA) - which is part of HUD - insures the loan, so your lender can offer you a better deal.
http://portal.hud.gov/hudportal/HUD?src=/buying/loans
Most FHA mortgages require a 3.5% down payment — that's $3,500 for every $100,000 you borrow — and the average down payment on an FHA home loan is about 4%, according to Ellie Mae. That's far less than the 20% average for conventional home loans.
http://www.interest.com/fha-loans/news/how-to-get-an-fha-loan/
Another advantage of FHA loans is that FHA does not require a credit scoring item called a FICO (Fair Issac Company) score. So if you have no credit at all you may still qualify for a FHA loan. If you have some credit you will typically need a minimum middle credit score of 580 to qualify for a FHA loan. If you are not sure what your credit score is, you can click here to order your credit scores online.
http://fha-home-loans.com/fha_loan_credit_qualifications.htm
what does your credit score have to be for a fha loan
The credit score for the Federal Housing Administration loan is below 580. The credit score have to be below 580 for a FHA loan which are required to make a down payment of 10 percent or more of the home's purchase price.