FHA World - Credit score needed to buy a house 2016
The mortgage industry has changed dramatically in the last few years. In the old days obtaining an FHA loan was easy. Today, most lenders require a minimum credit score of 640 to qualify for a FHA loan.
It is important to understand that just because one lender will not qualify you for an FHA loan, it does not mean that another lender will not approve you.
After the financial crisis of 2008 all the major banks raised their standards for approving an FHA loan. Because the banks make the rules for loans they will approve they may require a minimum credit score of 640 for their loans. These guidelines are the bank's guidelines.
FHA World - Credit score needed to buy a house 2016
Borrowers with a prior bankruptcy, foreclosure, deed-in-lieu, or short sale may be eligible for an FHA insured loan if the bankruptcy, foreclosure, deed-in-lieu, short sale was the result of a documented extenuating circumstance.
Borrowers may also be eligible for an FHA insured loan on a purchase transaction after 12 months from the completion, discharge, trustee's sale if the borrower meets the requirements for extenuating circumstances Economic Event.
FHA World - Credit score needed to buy a house 2016
FHA announced a policy change to address risk and strengthen finances. FHA changed the minimum credit scores for new borrowers:
Mortgage World Home Loans is an online mortgage company specializing in FHA loans for first time home buyers. To buy a home with 3.5% down payment and a minimum credit score of 580 using an FHA loan.
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We look forward to working with you.
Call us 888-958-5382
www.MORTGAGE-WORLD.com LLC is an online mortgage company specializing in FHA loans for first time home buyers.
We look forward to working with you.
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Minimum Credit Score Needed
to Buy a Home
FHA requires a minimum credit score of 500 to buy a house
Collection accounts
A collection is minor in nature usually does not need to be paid off as a condition for loan approval
Bankruptcy
Chapter 7 Bankruptcy at least two years must have elapsed since the discharge date
Foreclosure
Foreclosure must have been resolved for at least 3 years
Short Sale
FHA guidelines requires three year past from the date of sale of the property
Call Now, Our Staff is Available
888-958-5382