FHA Credit Score
FHA BAD CREDIT SCORE REQUIREMENTS
A credit score is a number that is assigned based upon statistical analysis of a person’s ability to manage their and debt and credit, essentially allowing for their creditworthiness. A credit score is primarily based upon credit reports that are provided by three credit bureaus. There are three bureaus that report on your credit scores, Experian, TransUnion, and Equifax.
FHA loans, increasingly known as bad credit home loans, allow for the lowest credit score when approving a borrower. Current FHA guidelines allow for a score of 580 as the middle score. Conventional mortgage loans may require 700 scores or better. Clearly there are advantages of seeking an FHA loan if you believe you may need a bad credit home loan.
Low down payment, low credit score requirements, low closing costs, and great interest rates. Down wait until rates go up – we are waiting to talk to you!
There are different kinds of scoring models. As an example, there is a score for credit cards, auto loans, and houses. Each loan will produce a different score, although that is crazy, it is a fact. How banks and mortgage lenders arrive at your credit score is by using the mortgage scoring model, taking all three scores and putting them in numerical order. Then, remove the highest number and the lowest number and you are left with your mortgage score, the middle number.
We have a partnership with ScoreSense.com that will give you access to your three scores, and your credit report. Click here to gain access.