Minimal credit score requirements demanded for FHA loans are dependent on the product needed by the applicant. In order for a borrow to receive a typical FHA loan requiring 3.5% down, they have to have a credit score of at least 580.
Buying your first home?
FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan.
Low Down Payment with FHA loans.
The Federal Housing Administration allows for the 3.5% down payment to be a gift from a relative, from a 401k account or any type of down payment assistance.
According to FHA guidelines, borrowers who are delinquent on Federal debt, such as Tax Liens or student loans are not eligible, unless they are in a repayment plan for a minimum of three months. The amount of quality lenders in existence today that offer FHA loans to borrowers with poor credit scores is scarce. It is still possible however, The Lenders Network is a great place to start. They evaluate your loan needs and match you with a lender that has the right loan program for you.
The Government shutdown is not affecting the FHA according to HUD. With the housing market in a bit of a flat line, now is a great time to buy up a home and get a great deal!