FHA home loans have more lenient credit quality requirements than conventional loans. FHA will often allow a applicant to be approved for a FHA home loan even if their FHA loan credit score is not perfect. Below are some facts about FHA loan credit requirements:
- You can get a FHA loan two years after a bankruptcy (conventional requires a four year wait)
- FHA home loans require a three year wait after foreclosure (conventional loans require a seven year wait)
- You can apply for a FHA loan three years after a short sale
- Your FHA credit score does not have to be perfect, you can still get excellent FHA interest rates with a 620 or above score. If you score is below 620 we can review your score with your and help you strategize to quickly raise your score
Also, below are the two most common fixes you can make to your credit score to quickly raise it:
1. Make sure your credit card balances are below 30% of your total credit limits with that creditor
2. Read through your credit report thoroughly and check for mistakes. If you find mistakes have them removed.
Changing these above two items can help quickly raise your score substantially.