Real Estate Articles

2014 FHA Loan Requirements | By: The Iannottis

2014 FHA Loan Requirements

FHA minimum credit score is 500 to buy a house or refinance.

New FHA policy requires a minimum credit score of 500 to buy a house or refinance. Borrowers with a credit score above 500 are eligible for an FHA loan.

New borrowers will now be required to have a minimum credit score of 580 to qualify for FHA 3.5% down payment. New borrowers with less than a 580 credit score will be required to put at least 10% down payment.

Borrowers with a score above 580 can refinance up to a 97.5% loan-to-value on a rate and term refinance. And up to 85% cash out refinance with a credit score above 580.

The FHA has taken the following step:

  • Update the combination of FICO scores and down payments for new borrowers
  • New borrowers will now be required to have a minimum credit score of 580 to qualify for FHA’s 3.5% down payment program
  • New borrowers with less than a 580 credit score will be required to put down at least 10%
  • FHA loan requirements 2014

No credit history

Three lines of credit are necessary to apply for an FHA loan. However, in the event a borrower does not have sufficient credit on their credit report the FHA will allow substitute forms. FHA allows minimum trade lines if you have credit scores.

Late payments

During an underwriter analysis of borrower credit, the overall pattern of credit behavior is being reviewed rather than isolated cases of slow payments. If a good payment pattern has been maintained, regardless of a specific period of financial difficulty preceded it, the borrower may escape disqualification.

Collection accounts

FHA does not require collection accounts to be paid off as a condition of mortgage approval. However, FHA does recognize that collection efforts by the creditor for unpaid collections could affect the borrower’s ability to repay the mortgage.

  • If evidence of a payment arrangement is not available, the lendermust calculate the monthly payment using 5% of the outstanding balance of each collection, and include the monthly payment in the borrower’s debt-to-income ratio.

Chapter 7 Bankruptcy

At least two years must have elapsed since the discharge date of the borrower and / or spouse’s Chapter 7 Bankruptcy, according to FHA guidelines. This is not to be confused with the bankruptcy filing date. A full explanation will be required with the loan application. In order to qualify for an FHA loan, the borrower must qualify financially, have re-established good credit, and have a stable job.

FHA loan requirements 2014 minimum credit score to qualify is 500.

Source: http://www.fha-world.com/fha-loan-requirements-2014.html

www.FGCReia.com  (Florida Gulf Coast REIA) does not give legal, tax, economic, or investment advice. FGCREIA disclaims all liability for the action or inaction taken or not taken as a result of communications from or to its members, officers, directors, employees and contractors. Each person should consult their own counsel, accountant and other advisors as to legal, tax, economic, investment, and related matters concerning Real Estate and other investments.   

Your email will never be shared or sold to other members, vendors or any other third party without your consent.


Contact Us:

Florida Gulf Coast REIA

7040 Lakeland Ave N #200
Brooklyn Park, MN 55428
(763) 432-2809

Proud Affiliate Member of Think Realty

Follow Us


  • Copyright 2019 © Florida Gulf Coast REIA  All rights reserved. | This REIA Website is powered by: Real Estate Promo