FHA home loan requirements in Texas with credit scores 500-579 or “no score”
FHA home loan requirements for people with a score of under 580, of course there are many requirements and more hoops to jump through. We often suggest working on increasing your credit scores to at least a 580 before buying. We even offer a free credit repair kit to our clients who we cannot get approved. However some people just cannot wait or do not mind paying higher rates and closing costs, we do have lenders that can get these loans closed.
Basic FHA home loan requirements for consideration of a 500-579 credit score FHA loan in Texas.
- Maximum 90% Loan to Value
- Purchasers must have at least 3.5% down payment
- Borrowers must have 2-4 months of mortgage payments in reserves
- Payment shock can be no more than 100% (double)
- 12 months of verified rental history via canceled checks or institutional Validation of Rent.
- Loan must meet basic FHA requirements outlined by the FHA.
- $70,000 minimum loan amount