The requirements for an FHA 203b loan include a credit score of 580 or above, and a down payment of 3.5% of the purchase value of the home. If the credit score is between 500 and 579 the applicant must pay 10% of the purchase price.
A 203b loan is an option for borrowers who fail to meet conventional loan requirements, which require at least 20% of the purchase price as a down payment. Applicants who have consistent income and employment but don’t meet the minimum credit score requirements may be eligible for this loan. To apply for the FHA 203b loan, the borrower must confirm their credit score, and they must purchase mortgage insurance. Loan limit information can be obtained from the FHA lender’s office.