Credit Requirements for FHA Home Loans | Do You Qualify?

What Is an Average FICO Score?

Your credit score is a number that falls between 300 to 850. Average credit scores vary depending on age group and the length of a person’s credit history. According to the credit reporting company Experian, consumers over the age of 60 have an average good credit score of 749. Younger borrowers between the ages of 20 and 29 have an average score of 662.

Minimum Credit Score for All Loan Types

The average credit score for a mortgage loan is around 620 to 640. Personal loans are a bit higher, with typical credit scores falling between 680 and 700.

Official HUD Guidelines for Credit Score

The U.S. Department of Housing and Urban Development (HUD), sets the guidelines for minimum qualifying credit scores, but it’s important to be aware that different lenders will have their own minimum requirements that may be higher. Our minimum credit score for an FHA loan is 620. To visit the HUD website and learn more about FHA loans, click here.

The purchase price of a property determines the down payment. Mortgage insurance is required when a borrower puts down less than 20%. FHA borrowers who put down less than 10% pay mortgage insurance for the life of the loan.