Another week, another change in underwriting guidelines - but this time it just got easier to get a mortgage if your credit score is 630. Effective immediately, the minimum credit score for an FHA purchase mortgage is now 620. A few conditions that must be present for these loans include: Maximum PITIA may not exceed 33% of total qualifying income Maximum total monthly obligations … [Read more...]
640 Is The New 580
For many years, if you wanted to get an FHA loan, you didn't actually have to have a "minimum" credit score - but about 2 years ago, that changed when lenders started requiring a minimum credit score. When lenders first started requiring minimum credit scores, the first minimum credit score they used (or most of them used anyway) was 580. Then over time it moved to 620. And now I am seeing … [Read more...]
The FHA Streamline Refinance: Do You Need A 620 Credit Score?
I have had more than one call recently from someone asking me a question similar to: "Do I need a 620 credit score for the FHA streamline program?" And I am happy to report that my answer a.) is accurate as of today and b.) is generally the answer they are looking for. I don't remember the last time that someone with a credit score of 740 called me and asked me "hey, do I need a 620 … [Read more...]
Does FHA Have Minimum FICO Score Requirements?
I hung up the phone with someone yesterday who asked me a few questions about FHA credit score requirements. The answers I gave to the questions she asked were just strange enough that I thought it might be helpful to share with others – because they may have these same questions. Question: Does FHA require that people have minimum credit score requirements? Answer: No, but investors do. And … [Read more...]