Minimum Credit Scores on FHA Mortgage Loans

You can get a FHA mortgage with a credit score as low as 500. These minimum credit scores on FHA loans offer a layer of protection against getting a home that you ultimately cannot afford. It also gives the lender a layer of protection against lending to someone who cannot handle the commitment. Why are credit scores so important anyway? A credit score is single digit that is a culmination of the information on your credit history. Your score goes up with good credit practices and goes down with bad credit practices. A high score is an indication if you are ready to take on the responsibility of a mortgage.

FHA Approves Bad Credit Mortgages with Credit Scores as Low as 500!

Lenders have the final decision on whether they will loan to any borrower. One common misconception about FHA home mortgages is that it actually comes from the federal government. In reality, an FHA loan is a loan you get from a private lender, which has underwriting from the FHA. With government backing, Approved FHA lenders will offer better terms on these loans. However, in the end, they have no obligation to lend to anyone if they deem them not creditworthy. While FHA guidelines allow loans to those with credit scores of 500 or above, the lender will look at other factors to determine if the loan will work or not.

There are compensating factors lenders can consider when looking at someone with a score lower than 580. To get a typical FHA home loan, you need a score of at least 580. In many cases, lenders will require one at 620. For those with scores lower than 580, in order to reduce the risk, the lender may require that the borrower come up with a higher down payment. For example, typical FHA loans require a minimum of 3.5% down. The lender may require between 5% and 10% down instead. This is only one factor that lenders may require for approving a loan to someone with a very low credit score.

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When you start asking about minimum credit scores on FHA loans, you need to be in a solid financial position when approaching a lender. You need to show that you have the income levels they require. They will also like to see if you are making changes to get your financial situation back in line. You may have gone through a layoff. Before getting another job, you may have had issues with meeting your debt obligations. If you can show you have been working to get current, the lender will look more favorably on the loan application.


Talk to HUD approved FHA mortgage lenders who pride themselves in offering the best FHA mortgage rates online. We provide secure fixed rate FHA loans for refinancing ARM's into thirty year mortgages with fixed payments that you can afford paying every month.

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FHA Loan Qualification

FHA mortgages are easy to qualify for because bad credit scores are tolerated with compensating factors. Very little equity is required to refinance, so even if you lost equity from their home there is an opportunity to refinance.

FHA home loans are easy to qualify for because bad credit is allowed and you virtually no equity is required to refinance.

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FHA Loan Qualifications

FHA home loans are easy to qualify for because FHA mortgage loans allow bad credit is allowed and you virtually no equity is required to refinance.

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FHA Interest Rates

The interest rates for FHA refinance and home purchase loans remain competitive and comparable to conventional Fannie Mae mortgage rates.

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FHA Refinance

Borrowers are given fixed rate grace with exceptions for qualifying made for borrowers who were not late prior to their mortgage adjusting.

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State Home Mortgage Loan Limits for FHA Lending

A few years ago, FHA and Congress pushed through an emergency lending bill that extended FHA loan amounts across the country. Earlier this year, consumers received some good news from HUD with the economic stimulus package that mandated a dramatic increase for conforming and FHA limits. The higher loan amounts should help thousands of homeowners refinance into better mortgages. Most FHA lenders were praying that 2014 FHA loan limits will remain at 2013 levels. Last year, the U.S. government announced that HUD will continue to recognize the FHA Limits from the previous year. The limits in 2012 were reduced temporarily on FHA loan refinances and purchase mortgages until Congress passed an emergency bill that reverted to the higher limits from the previous year. Going forward this year and beyond you can expect competitive rates for FHA refinancing and buying. FHA home loans for bad credit may not last forever, so if you have credit scores below 620, we suggest you review your eligibility with an experienced lending professional that is approved with the Federal Housing Administration.

The state pages below are listing of the FHA single family mortgage limits. The loan limits were referenced from the FHA's department’s automated underwriting system online. Since mortgage limits can change frequently, please contact your loan officer to verify applicable loan increases. (See ). All Loans subject to FHA loan limits by state and county.

© 2008 to 2013 - FHLR. Trade/service marks are the property of, or their respective loan subsidiaries. Some FHA mortgage products may not be available in all states.

This is a website and does not guarantee FHA loan approvals online. does not make FHA home loans online. This site does not pre-qualify or guarantee approvals on FHA mortgages but our services can refer you to approved FHA lenders. has no affiliation with FHA or any other government subsidiary. This is not an advertisement for credit as defined. This is not a commitment to lend. Certain restrictions and requirements may apply. - Site Disclosures Rates are subject to change on home loans with a FHA refinance.

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