mortgage

7 crucial facts about FHA loans

Less-than-perfect credit is OK
Less-than-perfect credit is OK

As of September 2010, minimum credit scores for FHA loans depend on the type of loan the borrower needs, according to the FHA, but scores should be 580 or better.

Those with credit scores between 500 and 579 are limited to borrowing 90 percent loan-to-value.

A credit score of 500 or less generally means you won't be eligible. The FHA will make allowances under certain circumstances for applicants who have what it calls "nontraditional credit history or insufficient credit" if they meet requirements. Ask your FHA lender or an FHA loan specialist if you qualify.

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