FHA Loan with 580 Score 1-4 Units

Extended Guidelines


This is a FHA government insured loan with extended credit guidelines. This program allows a 580 minimum credit score. Buyer must be able to afford the mortgage and be responsible with current rent. Credit issues should source from past issues and demonstrate recent improvement of credit repayment pattern.

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Credit score: 580 minimum
Property type: 1-4 units, Condo, PUD
Occupancy: Primary residence
Down Payment: 3.5% minimum
Loan to Value: 96.5% CLTV: 99.5%
Gift Funds Allowed. No minimum buyer contribution
Closing cost: Seller and/or lender can pay up to 6%
Debt Ratio: 43%

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Additional Notes:

  • Must complete Homebuyer Education
  • Must provide evidence of strengths to offset their deficiencies
  • Should not have no negative credit reporting in last 12 months
  • Should pay cumulative collections within 24 mos. or over $2,000 must be paid
  • VOR from property management or 12 mos. cancelled checks
  • Condos must be FHA approved
  • Non-occupying borrowers permitted on SFR
  • Unpermitted additions will not be given value
  • Bankruptcy 2yrs, Foreclosure 3yrs, Short Sale 2yrs

This page contains program highlights only. See sidebar links for further information and details.

All program are subject to change at anytime without any further notice