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Important update: Cherry Creek Mortgage is now partnering with Guild Mortgage.
Already working with a Cherry Creek Mortgage loan officer? Find them on the Guild Mortgage website.

Credit Score Requirements for FHA Loans

FHA loans offer flexible credit and down payment options for buyers, making it an ideal choice for buyers with less-than-perfect credit.

FHA home loans are government-backed mortgages insured by the Federal Housing Administration. These mortgage loans are sometimes easier to get than conventional home loans due to their less stringent credit requirements and lower down payment requirements. FHA loans are a great option for first-time home buyers and those with low-to-moderate incomes, but anyone can apply. You can use these loans for the purchase of a primary residence.

How Credit Affects Your Home Buying Options


Your credit history directly impacts whether you’re approved for an FHA mortgage. It also determines your mortgage interest rate. Borrowers with low credit scores and more recent credit problems have a higher risk of default. So they typically pay higher mortgage rates, which increases the cost of their loan. A higher rate means paying more in interest over the life of the loan, as well as a higher monthly payment.


Standard Credit Score Needed for Conventional Loans


Average 20-year-old’s Credit Score


Our minimum credit score for FHA *

Official HUD Guidelines for Credit Score


One of the benefits of using an FHA loan is that this type of mortgage is great for home buyers who may have a lower credit score. The U.S. Department of Housing and Urban Development (HUD) provides credit guidelines for Federal Housing Administration (FHA) home loans. However, each lender can set their own credit score requirements. Our minimum credit score for an FHA loan is 540*. To visit the HUD website and learn more about FHA loans, click here.

Average Home Buyer Credit Scores

FHA Loans with No Credit

Credit Score Needed for FHA Loan Approval in 2023

Getting an FHA Mortgage After a Bankruptcy, Foreclosure or Short Sale

It is easier to get approved for an FHA home loan after credit problems, compared to other loan programs. You might qualify for a loan two years after bankruptcy, three years after a foreclosure, and three years after a short sale. Talk with a loan expert to find the best home financing solution for you and your goals.

Find a Loan Officer

Our company is not endorsed by, nor acting on behalf of or at the direction of the U.S. Department of Housing and Urban Development, Federal Housing Administration, U.S. Department of Agriculture, Veterans Administration or the Federal Government.

* Credit scores under 580 require a minimum of 10% down payment.