How to Qualify for an FHA Loan with a Credit Score as low as 580
Good news for veterans of the U.S. military and anyone interested in an FHA loan — it just got easier to qualify for an FHA loan or VA loan if you have less than perfect credit. With Quicken Loans, you can now qualify for an FHA loan with a credit score as low as 580. That’s one of the lowest qualifying scores you’ll find in today’s mortgage market and veterans and active members of the military can qualify for a VA loan with the low credit score of 620 as well.
Borrowers who meet this minimum credit score criteria can lock in a 30, 25 (FHA only) or 15-year fixed-rate loan with a VA loan or an FHA loan. This is great news for people who have been unable to qualify in the past because qualifying credit thresholds were higher.
If your credit is at least 580 and you want to take advantage of low home prices and mortgage rates, this is your chance! One thing mortgage clients need to keep in mind – additional underwriting guidelines to the standard FHA guidelines may apply when qualifying for a loan with a credit score of 580.