Credit Scores and FHA Loans
Although the Federal Housing Administration (FHA) only requires a 580 FICO score to qualify for the 3.5% minimum down payment requirement, borrowers are hard pressed to find direct lender or an approved FHA Lender to extend a mortgage loan with such a low FICO score.
Most commercial lenders and big banks use 640 as a criteria to qualify a home buyer. Logic is simple, the higher the credit rating, the less the likelihood of defaulting on their mortgage loan. AMCAP Mortgage will extend an FHA mortgage to borrowers with scores as low as 580 with compensating factors.
As long as the borrower gets an approval from either Fannie Mae or Freddie Mac’s automated underwriting system (AUS), and they meet all the criteria and requirements, they can get an FHA loan from AMCAP Mortgage.
Non-medical collections and charged-off accounts do not have to be paid either. While most lenders require these items to be paid, AMCAP Mortgage will not. For more information regarding credit score requirements, contact us at 281-860-2533 or use any of the tools in this website.