What Credit Score Is Needed For A FHA Mortgage? With the interest rates at an all time low right now many consumers are looking to take advantage of this and become a first time homeowner. The housing collapse of years ago caused fha mortgage guidelines to tighten up and it is much more difficult to qualify for a mortgage these days. All loans now require proof of income in the form of paystubs or tax returns, and most lenders are looking for the time on your current job to be at least 2 years. Aside from being able to income qualify to get within their debt to income ratio, a fairly spotless credit report is required. Most guidelines call for at least a 620 credit score, and that is with no recent delinquencies or derogatory information contained in the credit reports. This includes late payments, charged off accounts, collection accounts and any recent public record such as a tax lien, judgment or bankruptcy. If the borrower had a small hiccup in the past 6 months the score requirement will typically be bumped up to a 640 middle score. This is usually determined by the underwriter, and usually will just apply to a late payment. A serious delinquency such as a charged off account will typically result in the loan being denied. Lenders are sticking to very tight guidelines as a way to protect their investors. The last thing that they want is a repeat of the housing crash and mortgage meltdown that occurred several years ago. The economy is finally starting to bounce back from that and the lenders that are left do not want to risk a repeat. The mortgage industry is very cut and dry these days. Every loan program requires full documentation of income and assets. There are no more low do or stated income loan programs. At the bare minimum the credit score for a mortgage is 620. As the lenders gain strength they may soon offer more loan programs, but as of this moment the options are extremely limited. If you are not at the minimum 620 credit score levels, or if you have some negative information on your credit reports then you may want to look into having your credit repaired. If you are already working with a mortgage company they may have a recommendation of a company you can use. Credit repair companies are typically up to speed on the current mortgage industry and guideline requirements, and can look at your credit reports and determine what can be done to get you to where you need in order to qualify. Of course, there is no quick fix, but working out a detailed long-term plan will have you on the right track to home ownership. Even if you do not plan on purchasing a new home for some time it is a good idea to get your credit repaired prior. This way you can go into the process knowing that you will qualify for the mortgage, and make the entire experience much more enjoyable and stress free.