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The minimum credit score you need to buy a home in 2019 + FHA requirements

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hi guys Ashton here with Diggs as always

bringing you tips on how to save for and

eventually purchase your first home so

you're thinking about buying a house and

you just pulled your credit Congrats

that's a great first step however if

your score is below 600 it may be time

to make some adjustments but first let's

talk loans specifically let's talk

Federal Housing Administration or FHA

loans these loans work well for many

first-time homebuyers because they are

backed by the federal government this

opens the door for a traditional lender

like a bank to take more risk than they

may normally knowing that the federal

government is offering a certain level

of insurance great news if you're not

prepared to put 20% down on your first

home the Federal Housing Administration

has the ability to adjust qualifications

such as FHA minimum credit score

requirements lending limits and more at

this time there are no updates published

for 2019 but it's always wise to work

with an FHA lender who can keep you up

to speed on the latest policies right

now the minimum credit score to qualify

for an FHA loan is 500 a 580 will

qualify you for the minimum FHA

downpayment of 3.5% and although 500 may

be the FHA financing credit score

requirement always be working to

increase your score because the average

credit score denied by FHA lenders was

actually in the low 600 s in other words

the higher credit score the better

chance you have of getting approved for

a mortgage so the lowest possible

qualifying credit score should not be

your goal here's what you might expect

lenders to look for again a higher

credit score than published minimums

expect to have your employment and

income verified even though it's not

technically required the length of time

you've been at your job can also be a

factor the longer the better the ability

to make a larger down payment than the

and or having a savings account or other

assets is a positive when it comes to

your overall risk factor rent payments

believe it or not what you're currently

paying in rent may help lenders decide

if you can afford your new mortgage

payment if you're renting in your

grandmother's basement for one hundred

and fifty dollars a month for example

adjusting to a $1,500 a month mortgage

could be difficult if your credit is

poor between 500 and 600 you should work

to improve it before applying for a

mortgage focus on paying down debts

increasing your income and keeping up

with loan or credit card payments and

you'll be well on your way thanks for

tuning in and feel free to read more

about credit and home loans in the

article below until next time