What credit score is needed to buy a House using an FHA Loan|The Lenders Network

What credit score is needed to buy a House using an FHA Loan.

FHA Loan Requirements state the credit score minimum to buy a house is 580. Get started today by filling out our short form to be referred to one of our FHA Lenders today.

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The credit score to buy a house is 580 according to the Federal Housing Administration. See the FHA Loan Requirements on credit scores on the official FHA site.  (See FHA official website)

Many home buyers, even some uninformed lenders will tell you that you need a 650 credit score for FHA, or even a 620 credit score. They simply are just going by their banks standards, not the official FHA Loan Guidelines.

FHA Loans are not just for first time homebuyers, if you have had an FHA loan, you can still qualify for a new FHA Loan. You can have two FHA Loans at the same times in certain situations.

The FHA down payment required is 3.5%.

FHA down payment rules allow your down payment funds to be gifted from a relative.

Down Payment Assistance may be available for first time home buyers.

FHA loans are only available for primary residence occupancy only. Investors can not qualify for FHA Loans.

24 months from discharge of bankruptcy and have re-established good credit.

36 months from date of foreclosure or short sale. You must have re-established a good track record of on time payments after the foreclosure.

Must have steady employment history.

Debt to Income: Typically your total debt to income should not exceed 41%. This will vary depending on the lender you use.

FHA Loan Requirements for CO-BORROWERS:

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If there is more than one borrower, Lenders will:

Pull the credit score for each borrower.

Select the lowest credit score of the borrower to use as the “middle credit score” to determine FHA Loan eligibility.

Because FHA lenders use the credit score of the borrower with the lowest score. If a borrower has a poor credit score, just having someone with good credit co-sign will not help you qualify.

Both the primary borrower, and the co-signer must meet the minimum credit score needed to qualify. Co-signers are only needed if a borrower does not have enough income to qualify for the loan on their own.