FHA Loan Low Credit Score 500 Minimum Credit Score

  • Credit Score – A credit score of at least 500 is required.
  • Cash-Out Refinance – A credit score of at least 500 is required with a Max Loan To Value(LTV) of 85%
  • ***Effective 08/31/2019 FHA Cash Out Max Loan To Value(LTV) 80%
  • Down Payment – 3.5% down payment required with a 580+ credit score.
  • Down Payment  – 10% down payment required with credit scores between 500-579.
  • Eligible down payment sources – checking/savings, gift from family member, 401k,  IRA and eligible down payment assistance programs.
  • Property Requirements – All properties must meet certain safety, security, and soundness (structural integrity) requirements.

The Federal Housing Administration (FHA) was developed as part of the National Housing Act of 1934 with the goal of improving the housing market. To accomplish this goal, the FHA insures home loans offered by approved lenders. This insurance allows lenders to offer great rates and terms on home loans while protecting them from borrower default. Access Capital Group Inc. offers great rates on FHA loans in Washington, California, Arizona, Colorado, Florida, Idaho, Oregon, Wyoming, Minnesota, New Mexico, and Utah.  In addition to great rates, FHA loans have relaxed qualification requirements compared to conventional loans. Down payment requirements can be as low as 3.5% as well. For this reason, FHA loans are often a top choice among first-time home buyers.  FHA is not only for first-time homebuyers but for home buyers looking to potentially qualify with a credit score of 500-579 with a 10% down payment and with a 580+ credit score a down payment of only 3.5%.   Family members can even offer the funds needed for the down payment as a gift.

FHA Loan Requirements

FHA loans are limited to certain amounts based on the market. In low-cost markets, loans are limited to $294,515 and in high-cost areas, the loan limit is 679,650. To check FHA loan limits in your area please click the link below.


FHA loans and other government-backed loan programs are made possible by mortgage insurance. Two mortgage insurance premiums (MIP) are required with every FHA loan. The first is an up-front premium of 1.75% of the purchase price. This premium is added to your total mortgage balance at closing. The second premium is due as part of your monthly mortgage payment and fall between .45% and .85% of your annual mortgage balance. Each borrower will have a different rate depending on various factors including total loan amount, length of the mortgage, and loan-to-value (LTV) ratio. FHA loans are also available for refinances and special renovation projects. Cash-out refinances and streamlines refinance programs are available to homeowners who currently have an FHA loan. Credit scores as low as 500 may be accepted for refinances as well. To protect borrowers, streamline refinancing is only available if the borrower will save money through the refinance process. The FHA 203k loan is a unique type of home loan allows a borrower to combine the purchase of a home and the cost of renovations and repairs into a single mortgage

Whether you are a current homeowner researching FHA refinancing options, or a first-time home buyer looking to purchase your very first home, we can help. Access Capital Group Inc. offers great rates on FHA loans in Washington, California, Arizona, Colorado, Florida, Idaho, Oregon, Wyoming, Minnesota, New Mexico, and Utah.