In Homebuyers And Credit Score Requirements For FHA Loans, finance expert witness Daniel Milstein writes:
If you are buying a home, then you need to understand the credit requirements for FHA loans. FHA Underwriters are the people that work for the FHA mortgage lenders and make the decisions on loans. Although FHA loans are one of the easiest loans to get in today’s real estate market, you still need to prove that you have a history of paying your bills on time.
FHA loans typically require that you have no late payments of 30 days or more on revolving or installment accounts and no collection or judgment accounts within the past 12 months. Being able to show that you have a good credit history is the most effective way for you to give the FHA lender confidence that you will be able to make your new mortgage payments on time each month.
You’re probably wondering, “what is the minimum credit score for FHA loans”. Well, technically FHA has no minimum credit score at writing of this article. What has happened is that FHA lenders throughout the country have set their own credit score standard for FHA mortgages which is currently at 640.