FHA Loans

FHA Loans

FHA loans are loans that are provided by mortgage lenders who have insurance on their loans from the Federal Housing Administration. Thanks to these loans, borrowers with a not-so-perfect credit history and lower credit scores can have their dreams of owning a home come true. But because the government is putting themselves on the line for these types of loans, it’s important that applicants are carefully screened. One part of the screening process is checking your credit score. While this number will not have the final say on whether or not you are approved for an FHA loan, it does play a big role in making that approval happen – or delaying it. The credit score requirements for fha loan may vary from lender to lender, but in general the acceptable number range doesn’t vary much.

While individual mortgage companies can be a little flexible in their own terms for an FHA loan, generally you will want to make sure that your credit score is in the high 500s or low 600s. If it’s not quite in that range, don’t panic, but DO check your credit history immediately, take care of any outstanding payments or defaults, and notify the credit bureaus of any possible discrepancies. By doing your part to clean up your credit in the short term, you’ll make things much better for you in the long term.

Wednesday, May 7th, 2014 Mortgage

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