For many years, if you wanted to get an FHA loan, you didn’t actually have to have a “minimum” credit score – but about 2 years ago, that changed when lenders started requiring a minimum credit score. When lenders first started requiring minimum credit scores, the first minimum credit score they used (or most of them used anyway) was 580.
Then over time it moved to 620.
And now I am seeing many lenders move their minimum credit score requirement to 640 for FHA loans.
Which means that your mid credit score needs to be above 640 for many lenders to be able to help you get an FHA loan. Not all lenders are requiring a 640 yet – but if history is any indication, they will all soon be requiring a 640 mid credit score before they will loan you money.
Yes, guidelines are still getting tighter – and I don’t see the tightening trend reversing direction anytime in the near future.
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