For borrowers with credit scores in the 500-579 range, what is the FHA loan-to-value limit?

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Multiple Choice

For borrowers with credit scores in the 500-579 range, what is the FHA loan-to-value limit?

Loan-to-value limits for FHA loans depend on the borrower's credit score. LTV is the loan amount divided by the purchase price or appraised value, whichever is lower. For borrowers with credit scores in the 500–579 range, the FHA cap is 90% LTV, meaning at least a 10% down payment is required. This higher down payment reflects the higher risk associated with lower credit scores. For context, borrowers with scores of 580 and above can access up to 96.5% LTV (about 3.5% down). So, the limit for the 500–579 range is 90% LTV.

Loan-to-value limits for FHA loans depend on the borrower's credit score. LTV is the loan amount divided by the purchase price or appraised value, whichever is lower. For borrowers with credit scores in the 500–579 range, the FHA cap is 90% LTV, meaning at least a 10% down payment is required. This higher down payment reflects the higher risk associated with lower credit scores. For context, borrowers with scores of 580 and above can access up to 96.5% LTV (about 3.5% down). So, the limit for the 500–579 range is 90% LTV.

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