FHA Minimum Credit Scores: What to Know

By August 28, 2020November 9th, 2021No Comments
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1. What is an FHA loan?

FHA stands for Federal Housing Administration. Basically, an FHA loan is a mortgage that’s insured by the government. The Federal Housing Administration is part of the United States Department of Housing and Urban Development (HUD). FHA loans are great because they provide some flexibility especially for first-time homebuyers who have little savings or have credit challenges. 

2. Lowest allowable FHA credit scores 

The short answer is that there isn’t one. According to the FHA website, applicants are required to have a minimum score of 580 to qualify for the low down-payment option which is a down payment of 3.5%. However, if you have a lower credit score than this you can still get an FHA loan, you just have to put down a 10% down payment to qualify. If your credit score doesn’t meet these criteria, you will want to weigh the pros and cons and decide if you should use the funds to try to improve your credit or to put down the larger payment. 

3. Why do different mortgage lenders have different FHA credit score requirements 

Different mortgage lenders may have different FHA credit score requirements even though there are nationally established rates. This is because lenders have flexibility about what types of loans to offer and the lowest credit score they will accept. 

4. How to boost your credit score 

You can boost your credit score in a variety of ways. You can pay your bills on time, make utility and cell phone payments on time, reduce debt and keep balances low on credit cards, don’t open credit cards you don’t need, and check your credit report. 



We understand that the world of mortgages and loans can feel overwhelming, especially for first-time homeowners who are trying to figure everything out. Luckily Scott DeGregorio has got your back. He has been working in the mortgage industry since the 1990s and is an expert in the area’s market trends. He believes that education is power and that power is the gateway to his client’s success. He can help you understand the mortgage process and make the best decisions for you. 


You can schedule your free consultation here. 


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