Credit Score Requirement for FHA loans

FHA Credit Score Requirements 2010

Your credit score is definitely being held to higher standards these days. When applying for a FHA loan you will discover that FHA has its own credit score requirements. You will also learn that the banks have a set of their own credit score requirements. This can be confusing and misleading at times. This information will be different depending on who you talk to. So what are the credit score requirements for 2010?

FHA requirements

FHA currently will insure loans down to a 580 credit score as long as you have the credit criteria to do so.


  • No Foreclosures during the last 3 years
  • At least 3 lines of good credit on your credit report for 12 months
  • Good Rental History
  • Ne recent collections or Charge Offs

Bank Requirements

The credit score requirement with most banks currently to get a FHA mortgage is 620. Even though FHA will insure loans down to a 580 credit score, the banks still have to finance them. FHA is not a loan; it is a government insurance department that insures bank loans. This is why there is so much misinformation about FHA loans. A bank in this particular market will not finance a FHA loan if that loan is not sellable. All banks sell their loans on the bond market. This market is also called secondary market in the mortgage world. This is where mortgage loans are bought and sold daily.

So bottom line is most banks will require a 620 middle credit score to get financed even though FHA will insure a loan below a 620 credit score. Also take note that you could get denied with a 620 credit score if the bank does not like your credit history. A 620 credit score does not guarantee an approval.

Tips for getting approved

  • No late payments during that last 12 – 24 months on credit report
  • Keep your debt low
  • No Chapter 7 bankruptcies during the last 2 years
  • No Foreclosures during the last 3 years
  • You will need 3.5% down payment
  • Good 12 month rental history
  • 2 year work history
  • No judgments
  • No Defaulted student loans
  • Must be current on child support payments
  • Need  a credit score of 620 to get approved with the (Banks) not FHA

FHA resources on the web:

Author: Mike Clover

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Disclaimer: This information has been compiled and provided by as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.