FHA loans typically are best for homebuyers with a sub-620 credit score or with a low-down payment. Government-backed mortgage loans, Federal Housing Administration (FHA) loans arefor those who have credit scores of 580 and higher and are in search of 15- or 30-year terms. These are popular amongst first-time homebuyers and require FHA mortgage insurance.
- A minimum FICO®Score of 640.
- An eligible property – the home you want to buy or refinance must be in an eligible rural or suburban area.
- A household income under the limit set by the USDA for the area where you want to buy a home.