FHA Credit Requirements

When you apply for an FHA loan, the lender evaluates your credit worthiness based on past credit performance. The FHA requirement is that a borrower must have a good credit history that is proven by a solid track record of timely payments. These borrowers are usually approved. A borrower who has a poor credit history with delinquent accounts, late or slow payments and a lack of good financial judgment is not a good candidate for an FHA loan approval.

Here is a list of items that affect the borrower’s credit worthiness:

  • No credit history
  • Late payments
  • Chapter 13 bankruptcy
  • Chapter 7 bankruptcy
  • Foreclosure
  • Collections, judgments, federal debts