What is the minimum credit score typically required for a borrower to qualify for an FHA loan with the standard 3.5% down payment?
Correct Answer
B) 580
FHA guidelines require a minimum credit score of 580 for borrowers to qualify for the standard 3.5% down payment option. Borrowers with scores between 500-579 may still qualify for FHA financing but must make a 10% down payment. Scores below 500 typically result in FHA loan denial.
Why This Is the Correct Answer
FHA guidelines require a minimum credit score of 580 for borrowers to qualify for the standard 3.5% down payment option. Borrowers with scores between 500-579 may still qualify for FHA financing but must make a 10% down payment. Scores below 500 typically result in FHA loan denial.
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