– Qualifying for an FHA Loan.. To qualify for a FHA loan, you will need to have at least one line of credit and generally speaking a minimum credit score of 580. Depending upon circumstances, some lenders will allow for a 600 credit score.
Eligibility: Owner/occupants and nonprofit organizations can use FHA 203k, but not investors.The program is designed for one to four unit properties, but condo and townhome owners can use the program for interior projects. You don’t need perfect credit – because the FHA protects lenders in case you default, it’s easier to qualify. You still need sufficient income to cover the payments.
Some lenders are giving second-chance loans to those with bad credit – Brenda Woods didn’t want. Loan Fund, which won a $5.5 million award from the Wells Fargo WFC, +0.45% NEXT Awards for Opportunity Finance. The award was for expansion of an innovative financing.