FHA Credit Score Guidelines 2024
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Equifax = FICO score 5
Experian = FICO score 2
TransUnion = FICO score 4
If you are seeing a FICO score model different from what is stated above, rest assured that it is NOT the mortgage FICO score that mortgage lenders use to qualify a borrower.
Knowing Your Middle FICO Score
After you find out your mortgage-specific FICO scores based on what was mentioned above, it is time to know where you stand. The three (3) different credit bureaus will give you 3 different scores. You must discard both the highest and lowest scores, respectively. What you are left with is your “middle FICO score“. That is the score that mortgage lenders use to qualify for a loan.
For example, if your Experian score is 600, Equifax is 620, and TransUnion is 640 after you discard both the highest score (640) and the lowest score (600), you are left with 620 — that is your “middle FICO” score.
FHA FICO Score Requirement
The Federal Housing Administration (FHA) only requires a 580 FICO score to qualify for the 3.5% minimum down payment requirement. However, borrowers with scores below 580 down to 500 are still eligible with a 10%down payment.
FHA Down Payment Requirement
There are two down payment requirements depending on the borrower’s credit score.
- For the 3.5% down payment, a borrower must have a middle-FICO score of 580.
- Borrowers with a FICO score of less than 580 and all the way down to 500 may still qualify for an FHA-insured loan, but they will need a minimum of 10% down payment, and certain restrictions may apply.
Minimum credit score for FHA loan
As mentioned above, an FHA has two credit score requirements: (a) 580 with 3.5 percent down and (b) 500 with 10 percent down. However, an FHA loan is not a sub-prime loan program. Although the FHA allows borrowers with a lower FICO to qualify for a home loan, it does not allow approvals to borrowers who have low scores due to their inability to manage and pay their creditors on time. There are several reasons why a borrower’s credit score is low without actually having “bad credit.” Below are some factors affecting your scores:
For more information regarding credit score requirements, contact us at 800-854-4142 or use any of the tools on this website.
An FHA Loan Specialist Ready To Help You
Our FHA Loan Specialists are always available to help you and answer any questions. You may contact a dedicated FHA Loan Specialist through our website or by calling us directly. You may also chat with us to get a quick answer to your questions.
We Make The FHA Loan Process Quick & Easy
Lenders often times will steer their clients away from an FHA loan due to their inexperience with the program. FHA Loans are a great source of funding for our clients. We share our knowledge and experience with FHA loans, making it easier for borrowers.
FHA Approved Lender
The Federal Housing Administration requires lenders offering FHA loans to go through an extensive approval process. We are FHA-approved and designated as a “Full Eagle” FHA mortgage lender offering FHA-insured home loans in Texas.