Who it’s for: Because of their low credit-score requirements, Federal housing administration (fha) loans may be a good option for borrowers with moderate scores who are looking to refinance to a lower interest rate or to escape an adjustable-rate mortgage (arm) that is about to adjust.
You don’t, however, need that elusive perfect score of 850. When it comes to credit. offer on loans, including mortgages. Once your score is at that point, there’s no tangible benefit to improving.
. a good credit score, it is still worth reducing any credit card or loan debts you have before making your mortgage.
However, you’ll need a minimum credit score of around 620 to qualify for this type of mortgage. fha mortgage To qualify for the FHA’s flagship low down payment program, you’ll need a minimum.