Credit Score Requirements for FHA Loans in 2019
5 minute read
October 9, 2019


FHA loans are extremely popular because homebuyers can easily qualify for it even if they have a less-than-perfect credit score. There are few Credit Score Requirements for FHA Loans. The minimum credit score for an FHA loan in 2019 is 500 with a 10% down payment, and a 3.5% down payment if the credit score is 580. 

In this post, we will cover all the FHA requirements and guidelines in 2019.

Guidelines for Credit Score Requirements for FHA Loans

  • FHA loans require borrowers to have at least a credit score of 500 for eligibility with a 10% down payment. If the borrower has a 580 credit score, they can get an FHA loan with a 3.5% down payment. 

But it is important to know that some lenders will set their own requirements for an FHA loan and do not necessarily go with the official guidelines for FHA requirements. 

  • A lot of lenders do not accept borrowers who have scores below 620 for an FHA loan, but some will easily accept you if you have a 580 score. 

Then there are also lenders who offer loans to borrowers with a 580 score with a 10% down. However, these loans are often very difficult to acquire and there is always a good chance that the loan will not be closed. So make sure to improve your credit score to at least 580 before going for an FHA Loan.

What You Have on Your Credit is Actually More Important Than Your Overall Score

  • In the world of home loans, sometimes the credit score actually does not matter. For example, if you have a 580 score, you may be able to qualify for an FHA loan as opposed to a borrower who has a 620 score. 

This is because why your credit score is low is more important than your overall score. Your credit score could be low due to many reasons and that is what interest lenders the most. Here are a couple of scenarios to understand why this happens.

  • Case 1 – Let’s say an applicant has a credit score of 600. They always pay their bills on time but their score is still low because their credit cards are completely maxed out and they have not been an owner of the account for too long.
  • Case 2 – Let’s say an applicant has a 620 credit score. They also pay their bills on time but their credit cards have a low balance because they have several late payments on their record. This brings their score down and makes the uneligible for an FHA loan.

From the examples above, even though applicant 1 has a lower credit score compared to applicant 2, they will have better chances of qualifying for the loan. Applicant 2 will have trouble because they have late payments on their records. 

FHA Credit Guidelines

  • You should not have more than one late payment in the past 12 months to qualify
  • You should not have any unpaid collection account
  • You should not have any late mortgage payments in the last 12 months
  • You should have limited collection accounts

Let us help you get pre-approved for a home loan today.

Is it Possible to Get FHA Loan with No Credit?

  • Yes, it is possible to get an FHA loan with no credit score or history at all. Most lenders require at least two lines of credit from you. Burrowers that have no credit score can still qualify using non-traditional credit lines.

These can include a cell phone, and utility bills as well as insurance payments and proof of any rent payment they have made recently. 

  • Burrowers who filed bankruptcy can also qualify for an FHA loan after two years have passed after the discharge of chapter 13 or chapter 7 bankruptcy. 

Pros and Cons of FHA Loans

There are several advantages and disadvantages to FHA loans. Here are the noteworthy ones.


  • Down payment as low as 3.5%
  • Typically low credit score requirements
  • Can be easily qualified for
  • Low-interest rates after closing costs
  • There are fixed and adjustable-rate loan options available
  • High debt to income ratio guidelines are available


  • You must have mortgage insurance to qualify
  • High MIP Fees is involved
  • You usually get low loan limits

What is the Typical FHA Loans Down Payment in 2019

As discussed above, FHA down payments depend on your credit score.

  • If you have 500 credit score, you will get the loan with 10% down payment
  • If you have 580 credit score, you will get the loan with 3.5% down payment

Another important thing to remember is that unlike conventional loans which never require you to have mortgage insurance if you have 20% down available, FHA loans require mortgage insurance regardless of how much down payment you can arrange. 

How to Apply for an FHA Loan

By now you should have an idea of Credit Score Requirements for FHA Loans. Next, you need to know how to apply for FHA Loan.

  • To apply for an FHA loan, you must complete a loan application with an FHA-approved lender. Aceltis Group is an expert in helping you find the best lenders in the market place. 

There are many private lending institutions out there who offer FHA loans but qualifying for them is a tricky business. Talk to us today and we’ll let you know exactly what you’ll need to get the best loan with lowest down payments out there. 

  • FHA Loans just like any other mortgage loan come with closing costs and other fees. Because this fee varies from lender to lender, it is important to let us find the lender for you to match your budget. 

We are connected to some of the best lenders in the marketplace who trust us and our clients. We can help down on the down payments and even get you a good closing deal that will help you save a lot of money. 

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