FHA credit score ineligibility cutoff: applicants with scores below what are not eligible for FHA loans?

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Multiple Choice

FHA credit score ineligibility cutoff: applicants with scores below what are not eligible for FHA loans?

FHA lending uses a clear minimum credit score framework. The program allows borrowers with a score of 500 or higher. If your score is between 500 and 579, you must make at least a 10% down payment; if your score is 580 or higher, you can qualify with a 3.5% down payment. Because there is no FHA-insured loan option for scores below 500, applicants with scores under 500 are not eligible for FHA financing. Lenders may apply overlays that raise these requirements, but the basic FHA rule sets the cutoff at 500.

FHA lending uses a clear minimum credit score framework. The program allows borrowers with a score of 500 or higher. If your score is between 500 and 579, you must make at least a 10% down payment; if your score is 580 or higher, you can qualify with a 3.5% down payment. Because there is no FHA-insured loan option for scores below 500, applicants with scores under 500 are not eligible for FHA financing. Lenders may apply overlays that raise these requirements, but the basic FHA rule sets the cutoff at 500.

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