Can You Qualify for an FHA Loan With Poor Credit?

The Federal Housing Authority provides accessible mortgages with little to no down payment for those who qualify for an FHA loan. FHA loans are available to those with less than perfect credit such as first time home buyers and those with a bankruptcy in their history. However, there are some minimum qualifications for your credit history.

  • You should have a credit score of at least 580-600.
  • Within the last two years, you should have no more than two payments over 30 days late.
  • Bankruptcies should be at least 2 years old.
  • Foreclosures should be at least 3 years old.
  • You should have steady employment for 2 years or longer, preferably with the same employer.
  • You may be required to have an income that is increasing or at least steady over a number of years.

FHA loans vary from first time home buyer loans to green renovation loans. You may find other incentives to look for an FHA loan once you have started researching the different types available.