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Thereâs no credit score minimum, but most FHA lenders prefer a score of at least 620. In 2014, some lenders theoretically dropped their minimum score to 580, but lenders have generally set higher standards since the mortgage meltdown.
With an FHA loan, your down payment can be as low as 3.5% of the purchase price, assuming you have at least a 580 credit score. And closing costs can be bundled with the loan. In other words, you donât need much cash to close.f your credit score is between 500 and 579, your FHA loan is limited to 90% loan-to-value (LTV), meaning you must put down at least 10%. If your credit score is below 500, you are not eligible for an FHA loan. I canât find a lender willing to give me an FHA loan with a 500 credit score.