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What Are FHA Mortgage Lenders Minimum Credit Score?

The FHA mortgage applicant is not eligible for FHA-insured financing if the Minimum Credit Score  is less than 500. If the Minimum FHA Mortgage Credit Score is between 500 and 579, the FHA mortgage applicant is limited to a maximum loan-to-value (LTV) of 90 percent.

If the Minimum FHA Mortgage Credit Score is at or above 580 the FHA mortgage applicant is eligible for maximum financing.

The Mortgagee (lender) must downgrade and manually underwrite a mortgage that received an Accept recommendation if only the non-occupying co-FHA mortgage applicant has a credit score.  Minimum FHA Mortgage Credit Score with non-traditional or insufficient credit histories are eligible for maximum financing, but must be manually underwritten using the procedures in Handbook 4000.1 II.A.5.

The Minimum FHA Mortgage Credit Score refers to:

•             the credit score reported on the FHA mortgage applicant credit report when all reported scores are the same.

•             where three scores are reported, the median score is the Minimum FHA Mortgage Credit Score.

•             where two differing scores are reported, the Minimum FHA Mortgage Credit Score is the lowest score.

•             where only one score is reported, that score is the Minimum FHA Mortgage Credit Score. 

An Minimum FHA Mortgage Lenders Credit Score is determined for each FHA mortgage applicant. Where the mortgage involves multiple FHA mortgage applicant, the lender must determine the FHA Mortgage Lenders Credit Score for each FHA mortgage applicant, and then select the lowest FHA Mortgage Lenders Credit Score for all FHA mortgage applicant.  Where the mortgage involves multiple FHA mortgage applicant and one or more of the FHA mortgage applicant do not have a credit score (non-traditional or insufficient credit), the Mortgagee must select the lowest FHA Mortgage Lenders Credit Score  of the FHA mortgage applicant with credit score(s).   The lender must review the credit report to determine the FHA mortgage applicant FHA Mortgage Lenders Credit Score , except for mortgages to be insured under Sections 247, 248, Streamline Refinances, and Assumptions. 

For additional information see FHA Mortgage Lenders Handbook 4000.1 at: 

FHA-MORTGAGE-LENDERS.COM - DISCALIMER

US Mortgage Lenders has an extensive lender network that allows us to provide unique and mortgage solutions. Contact US for the most update information on terms and conditions. All Information on this site Is for example, hypothetical purposes and should NOT be relied on for decision making.
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