The FHA doesn’t actually make any loans, it just insures credits provided by the private lenders and reduces the potential risk to them.
Personal Money Service gives you an opportunity to apply for the program online. All the applications will be reviewed by the qualified lenders.
Every FHA-approved lender gives you the guarantee provided by the Federal Housing Administration and when a borrower is unable to repay his loan, the FHA will compensate the remaining balance on his credit and HUD forecloses on the property.
FHA (Federal Housing Administration) loans are quite flexible and even with a bad credit score, you can still be able to qualify for the program. Find out what are the main FHA home loan requirements.
To qualify the FHA loan program, your credit minimum score must be at least 580. Even with a lower credit, filed bankruptcy in the past or a high debt, you still have a chance to be accepted.
Future homeowners with the score below 580 will have to put down a 10% down payment if they want to qualify for a loan.
It has become more difficult to make an FHA-insured mortgage recently due to the meltdown of the housing market.
The credit score is just a one part of the application, so make sure that your job history and down payment also have no questions.