What Are the 2017 FHA Loan Credit Requirements?

Bruno Simpson Last Updated Oct 04, 2017 (0) comment

fha loan credit requirements

Looking to purchase your first home but worrying about financing?

An FHA loan may be an option for you! FHA loans are sponsored by the Federal Housing Administration to help you get a low down payment and lower closing costs.

There are particular requirements that you’ll need to meet if you want to qualify for an FHA loan.

In this article, you’ll learn about the 2017 FHA loan credit requirements to help you get started with getting your loan.

Credit Score

Your credit score plays a huge factor in FHA loan eligibility. One of the FHA loan credit requirements is a FICO score of 500 or better.

Meeting the FICO credit score requirement ensures that you are qualified for an FHA loan. However, it is important to keep in mind that your credit score also affects your down payment options.

A huge benefit to FHA loans is a low down payment of 3.5%. To qualify for that minimum down payment, you’ll need a FICO score of 580 or above. Anything lower and you’ll have to put down 10%.


FHA loan credit requirements also take into consideration the number of credit accounts you have in your name.

To qualify, you’ll need to be an established borrower with at least two credit accounts. These accounts could include student loans, a credit card, a business loan, or a car loan.

You need to be sure that you do not have any previous FHA mortgage debt or delinquent tax-related or government debt.

How Income Impacts FHA Loan Credit Requirements

While the amount of money you make each year doesn’t affect your eligibility for an FHA loan, your financial health needs to be solid.

Living paycheck to paycheck could be problematic as you’re working through the FHA loan requirements.

You must have a total debt-to-income ratio of 50% or less, taking into account your upcoming mortgage, loans, credit cards, and other monthly expenses.

Understanding How Lenders Affect the Process

As you’re sorting through these FHA requirements, it’s important to note that the lender you choose does have some say in your ability to get an FHA loan.

While you may meet all the FHA credit standards, a lender can add on additional requirements which can make it more difficult to qualify.

For that reason, make sure that you spend time contacting a number of lenders to find one that will work best for your situation.


Once you have an idea of where you stand financially, you’ll be ready to apply for an FHA loan.

To apply, you’ll need to prove your credit with a number of documents including your social security number, as well as pay stubs, W2s, or recent tax returns that show your income.

Happy Home Hunting

Now that you have a foundational understanding of FHA loan credit requirements, you can begin gathering your documents and assessing your financial situation as you look for your first home!

Feeling confident that an FHA loan will work for you? Contact me for a free mortgage quote!

Bruno Simpson

Contributor at FHA Loan Search
Mr. Simpson is based in the San Francisco Bay Area and has nearly a decade of experience in credit score and reports analysis, loan origination and the home loan application process.

He is an experienced presenter on affordable housing topics including FHA, VA, and conventional home loan programs.
Bruno Simpson

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