We’re pleased to announce we’ve LOWERED our minimum
credit score requirements for FHA and VA borrowers!
Effective immeditately, RMS has lowered the minimum FICO credit score requirement for borrowers looking to finance their homes using the FHA mortgage* or VA mortgage loan programs. The minumum FICO credit score for these applicants has been reduced to 580.
* This does not include 203k or FHA renovation loans.
What is the FHA Mortgage Loan?
FHA stands for the Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development (HUD). The FHA loan program is available for FHA-approved lenders to offer a variety of financing options to their clients.
If you’re planning on buying a home, the FHA loan program may be an ideal option for both first time home buyers and repeat buyers alike. With only a minimum 3.5% down payment needed, and lower credit score requirements than other loan programs, these government insured mortgage loans have guidelines designed to help borrowers to afford home ownership.
For current homeowners looking to refinance their FHA home purchase, the program offers a streamline refinance option.
Another great feature of the FHA mortgage program is that it offers a rehab mortgage, also called a ‘203K mortgage,' for both purchase and refinance home loans.
A FHA rehab mortgage can help when you are:
- Planning to purchase a home with repair contingencies
- Looking for a cost effective way to repair or improve your current home
- Rehabilitating a neglected or damaged foreclosure (within FHA eligible repair guidelines)
If you’re looking for a home mortgage to help restore a property or have limited funds for a down payment, let an experienced mortgage lender help determine if a FHA loan is the right option for you.
What is the VA Mortgage Loan?
The VA loan program is designed to help eligible Veterans, National Guard, Reservists and Surviving Spouses become homeowners. Home loans guaranteed by the VA do not require a down payment or mortgage insurance, saving eligible borrowers money both monthly and at the closing table.
Eligibility benefits can be used for a home purchase or refinance and may be used more than once! Eligibility requirements for a VA loan are based on:
- Length of Service or Service Commitment
- Duty Status
- Character of Service (determination of discharge conditions)
What does this mean for you?
If you have held back from trying to get a mortgage in the past because you knew your credit history wasn't perfect, this new minimum may open the door for you to make a fresh start in home ownership. Reach out to a loan officer to discover whether an FHA home loan may work for you. If you are active duty military, a veteran or military spouse eligible for a VA home loan, your loan officer can help you to understand your eligibility and look at what mortgage options you have available.