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What’s the Lowest Credit Score Allowed on an FHA Loan?

FHA loans are for people that need money but don’t have the best credit. Regular loan programs require a credit score of about 680 in order to qualify while FHA loans allow a score as low as 580. With at least a 580 credit score, you could get a FHA loan and only end up paying 3.5% on the down payment. You could still qualify for FHA loan with a credit score as low as 500, but you would have to pay a 10% down payment.

Key Takeaways:

  • 580 is technically the lowest FHA credit score, and it is 100 points lower than the Fannie Mae and Freddie Mac program requirements.
  • 31 percent of your gross monthly income is the maximum amount you are spending to cover your principal, interest, taxes, and insurance.
  • You might not be able to get an FHA loan if you have already defaulted on other federal loans.

“You should be able to show at least a 2-year stable employment history.”

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