FHA mortgages continue to be a popular option for many Ohio residents as we head in to 2017. Let’s revisit some of the more common questions in regards to Ohio FHA credit requirements.
FHA Credit Score Requirements
To check on your specific situation, head over to the Ohio FHA Interest Rate Request page and fill out the form (no social security number required), or give me a call at 513-777-8383 x222.
FHA, technically, offers financing for credit scores down to a 500. However, mortgage lenders in Ohio are able to enforce stricter guidelines. Which they do, most notably, for credit scores.
The US Department of Housing and Urban Development (HUD) has set the following minimum requirements for both FHA Refinances in Ohio as well as Ohio FHA Purchases:
Credit Scores of 580 and above – eligible for maximum FHA financing (96.5% for purchase transactions and 97.75% for refinances)
Credit Scores of 500 to 579 – limited to 90% financing
Real World Credit Score Requirements for FHA in Ohio
In the real world, the majority of lenders require a credit score of 640 or higher for Ohio FHA mortgages. Some lenders are slightly more lenient, requiring a 620 or higher credit score.
Very few lenders will consider an FHA mortgage application with anything less than a 620 score. I currently work with one lender that offers FHA financing down to a 580 score. Additional requirements that are often required include, but aren’t limited to:
- documenting 12 months of on time mortgage/rent payment via cancelled checks.
- payment shock calculation (your existing mortgage/rent payment compared to the new monthly payment).
- requiring a minimum amount of assets left after closing (referred to as reserves)
There are always exceptions to the rule, as new lenders enter the market place. Use this as a general guide to help you get started when looking into a Ohio FHA loan. You should always consult a loan officer to discuss your specific circumstances. You can reach me via my Contact Page