Rolanda, as you can see in the responses below, the minimum score can vary from one lender to another, and more importantly it is not the only determining factor. Generally speaking, lenders require a minimum 620-640 for FHA, which happens to have the lowest credit score requirements compared to conventional loan programs. Are there lenders who will do FHA with less than a 620? Yes, BUT you must be careful. These lenders generally carry significantly higher rates, fees, and more overlays and restrictions to the FHA program as a whole. FHA allows up to a 6% seller concession, gift funds, 3.5% minimum downpayment, and most of these lenders who allow FHA financing with scores as low as 580, typically do not allow you to take advantage of these FHA options.
In my experience, the best approach is to allow a Loan Officer to review all the necessary documentation and pre-approve you. Most experienced Loan Officers would be able to tell you exactly what you can do so that your credit scores improve right away, as oppose to a long term action plan.
I'm always available to help, please feel free to call or email me and we can talk further. I can assure you that we would offer all the perks of an FHA loan with little to no fees at the best rates possible. Good luck!
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Senior Loan Officer
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax