How Low-Score FHA Loans Work
FHA guidelines allow credit scores down to 500, but many lenders set their own higher minimums. So hearing no from one lender doesn't always mean no. Because we're mortgage brokers, we can look for lenders that go lower.
Who it can help. Home buyers who've had credit setbacks, have a limited credit history, or were told their score is too low.
What to plan for. FHA requires a larger down payment for scores from 500 to 579 than for scores of 580 and up. We'll go over what that means for you before you start shopping.
It's for your home. FHA loans are for the home you'll live in, not investment properties.
Close to 580? Raising your score a little first may open up better options. If waiting makes more sense, we'll tell you.
Know the tradeoffs. FHA loans include mortgage insurance, and a lower score can mean fewer lender choices and tougher terms. Your income, debts and savings still matter.
What to have ready. Recent pay stubs or other income documents, bank statements, and any details on past credit problems. We'll tell you what else we need before you pull everything together.
Told your score is too low? Call or text (303) 931-6776.
Not all programs are available in every state. All loans are subject to credit approval. Rates, terms and conditions vary by program.
Stephanie Cramm, NMLS #243972 | David Cramm, NMLS #565968 | Xpert Home Lending, Inc. NMLS #2179191 | Equal Housing Lender