New Credit Score Guidelines for FHA Loans

Richard Van Dyke
MRG Credit Consultant

FHA loans can still be a great deal but there are a few credit related changes for 2011

*  Minimum credit score at or above 580 are eligible for maximum 97.5% Loan to Value for FHA financing (3.5% down-payments required with purchases).

*  Minimum credit score between 500 and 579 are restricted to 90% Loan to Value for FHA finance options (10%         down-payment required).

*  Minimum credit score of less than 500 are not eligible for FHA- mortgage loans insured by the government.

*  FHA borrowers with a non-traditional credit history or insufficient credit are eligible for maximum financing if they   otherwise meet FHA guidelines.

*  Borrowers using 203(h), Mortgage Insurance for Disaster Victims, are eligible for 100% mortgage financing and no down-payment is required.  However, FHA borrowers must have at least a 500 credit score to be eligible.

Richard Van Dyke ,  Credit Consultant with MRG,  has been a credit specialist  for over 15 years with such companies as, Far West Credit, Inc., Land America – Credit Division, Credit Plus, Inc. Richard has also been a successful Real Estate Agent and an owner/operator of a mortgage loan processing center and loan origination division.