FHA loans come with relaxed credit score requirements. Therefore, you may still be able to take out this type of mortgage if you have less than stellar credit. Some lenders will approve you even if your credit score is in the 500s. Keep in mind, however, that you’ll likely have to prove you have a job and consistent income so that your lender knows you have the funds to repay your loan.
If you’re short on cash, you’ll be pleased to learn that FHA loans do not require too much down. In fact, you may be able to lock down an FHA loan with only 3.5% down, as long as you have a minimum credit score of 580. If your score is in the 500 to 580 range, you may need to put at least 10% down.
FHA loans come with relaxed credit score requirements. Therefore, you may still be able to take out this type of mortgage if you have less than stellar credit. Some lenders will approve you even if your credit score is in the 500s. Keep in mind, however, that you’ll likely have to prove you have a job and consistent income so that your lender knows you have the funds to repay your loan.
If you’re short on cash, you’ll be pleased to learn that FHA loans do not require too much down. In fact, you may be able to lock down an FHA loan with only 3.5% down, as long as you have a minimum credit score of 580. If your score is in the 500 to 580 range, you may need to put at least 10% down.
The county you wish to purchase a home in will determine your borrowing limits. In 2020, FHA loan limits range from $331,760 to $765,600. If you’re curious as to how much you may be able to borrow, use the search tool on the The Department of Housing and Urban Development’s website. Since loan limits can change, it’s a good idea to check the website every so often for the most up-to-date information.
