Many people have read about the new FHASecure Initiative and are curious what the average FICO score is for an FHA loan. Since FHA loans are not fico driven, it is best to look at what credit criteria is suitable for an FHA loan. The next few paragraphs will review the minimum credit criteria for FHA Loans.A FICO score is not even required to qualify for an FHA Loan, so the average FICO Score of an FHA loan is a moot point. To see if you can qualify for FHA Financing by an experienced mortgage professional, contact Michael R. Byrne at 1-800-999-2489 x7972 or mbyrne@gfhomeloans.com.
Borrowers with very high credit scores often also find FHA loan programs beneficial for their low down payment options. Consider this: you can purchase a 3 or 4 unit property with an FHA Loan with only 3% down and no pricing difference! FHA does require loans to be owner-occupied, and 3-4 unit properties require the borrower to have 3 months mortgage payments in reserves after closing.
With the new FHASecure initiative, borrowers can even be past due on a recently adjusted arm and still qualify for FHA financing. The main requirement for this program is that the debt ratios must be in line and the mortgage needs to have been current prior to the adjustment period.
FHA financing is even available to borrowers whose average FICO credit scores are below 500, however most lenders do not offer financing to these borrowers. However, FHA financing may be available to you even if your average FICO score is very poor, even below 500, with a sufficient explanation. To find out more, please contact a representative at 1-800-999-2489 x7972
The Average FHA Fico Score can include a Chapter 7 Bankruptcy discharged just 2 years ago, with acceptable re-established credit. Ch. 13 Bankruptcies do not have to be discharged at all to qualify for FHA financing, as long as a 1 year satisfactory trustee payment and mortgage payment have been made.
