Asked by Melvin D. Young Sr., Cobbs Creek, Philadelphia, PA Sun Dec 12, 2010

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Sun Dec 12, 2010
Hello Melvin,

There are FHA loans and USDA loans. In theory there are no credit score requirements but in actual fact there are. I have lenders that say they can go down to a 540 credit score but I have never closed a loan with that score in this economic environment.
640 seems to be a score that every lender will work with but I know that above 580 can work too with certain lenders. If I were you I would not be concerned with what credit score works but what you need to do in your situation as everyone's situation is different. If you have lots of reserves (savings) your loan may be approved whereas someone in a similar situation may not. If your debt to income ratio (dti) is low you can probably qualify with a lower score than someone with a higher DTI.
My suggestion is to talk to a few lenders to see how you can qualify for a mortgage rather than try to figure out what score you need. If you do not qualify now a good loan officerer should be able to direct you to someone who can help[ with fixing your credit

Best Regards,
Alan Openshaw
Cornerstone Lending Inc
720 Second St Pike Suite 104
Southampton Pa 18966
Office 215 953 0800
Fax 215 953 1706
Cell 267 992 7276
Voted Best of Bucks 2010
1 vote
Jessica Bate…, Agent, Beverly Hills, CA
Tue Sep 5, 2017
FHA requires at least a 580 credit score with 3.5% down. But finding lenders that go below 620 is tough. A company many of my clients have used is The Lenders Network, they refer people with credit issues to lenders that can help. And they have a great credit repair guide for free.

Good Luck!
1 vote
Phong Lam, Agent, Philadelphia, PA
Sun Dec 12, 2010
Good Morning Melvin,

How are you? Thank you for your inquiry. I think what you meant was FHA LOANS and NOT FDA LOANS, is that correct? If so, FHA (Federal Housing Administration), also known as HUD (Department of Housing and Urban Development). The Federal Housing Authority is a federal entity that governs the FHA mortgage program, which is a low down-payment mortgage program with flexible credit and qualifying guidelines.mortgages. Here is a website that you can find out more on FHA Loans:


It gives you everything you need to know about FHA there. For FHA loans, you would require at least a 620 FICO Credit Score or higher in order to qualify for a loan. If you are a First-Time Homebuyer and have at least 580 credit score, I could refer you to a mortgage company that is will to take in a borrower that has only at least a 580 credit score or higher. If you are interested, please feel free to email or call me at (267) 918-1880 and I'll be more than happy to pass along their contact information for you.

Hope that helps!

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Best Regards,
Phong Lam, CSM
CENTURY 21 Advantage Gold
2010 Oregon Avenue
Philadelphia, PA 19145
Business: (215) 465-1400, ext. 508
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1 vote
Josh Barnett, Agent, Carney, OK
Sun Jan 4, 2015
Complete a loan application with a local lender and they will be able to answer your questions in detail.
0 votes
Erica Ramus,…, Agent, Pottsville, PA
Sun Dec 12, 2010
There are also USDA loans. So I'm not sure if Melvin meant FHA or USDA!
0 votes
Linda S. Cef…, Agent, Franklin, WI
Sun Dec 12, 2010

The term you are looking for FHA and the previous answer is a good one. You need to contact a lender if you are contemplating buying a home. They will go over all of that with you and explain the different types of loans available and the criteria that needs to be met. Also, you may be very close in scores and the lender will be able to help you improve those scores, sometimes in a relatively short period of time.
0 votes
James Gordon…, Agent, Hamilton, OH
Sun Dec 12, 2010
Melvin I am not sure that the Food and Drug Adminstration makes home loans. You may want to sit down with a local loan officer and find out what financing options are availble for you.
0 votes
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