One of the most popular questions many loan officers are asked in today’s market is:
“Does FHA require a minimum credit score?”
And the official answer to that questions is: No, FHA doesn’t require a minimum credit score – but many lenders do.
Which means you must meet the lender’s minimum credit score requirement if you are going to get them to loan you money even if it is insured by FHA against loss.
About 2 years ago, many lenders started moving toward requiring a minimum mid credit score and at the time the minimum requirement was 580.
Then about 9 months ago, many lenders started moving toward requiring a minimum of 620.
And now, many lenders are moving to requiring a minimum of a 640 credit score before they will loan you money for a FHA insured mortgage.
As you know, FHA doesn’t actually lend you money – they only insure your loan against loss. In the event that you default on your loan, FHA insures your lender against loss. Which means that even though FHA may not have a minimum credit score requirement, if a particular lender has a credit score requirement – it is effectively the same as if FHA was requiring the minimum credit score…
Because unless you meet the minimum credit score, you won’t get an FHA loan from that particular lender.
And the easiest way to get a free credit score analysis is right here.