BAD CREDIT Whats the minimum credit score for bad credit mortgage approval?

SELF EMPLOYED MORTGAGE LENDERS QUESTIONS AND ANSWERSCategory: FHA QuestionsBAD CREDIT Whats the minimum credit score for bad credit mortgage approval?
Thomas Martin Staff asked 3 years ago
Whats the minimum bad credit score to qualify for an FHA mortgage?
The Bad credit FHA mortgage applicants is not eligible for FHA mortgage financing if the Minimum Decision bad credit score (bad credit score) is less than 500.
If the bad credit score is between 500 and 579 the Bad credit FHA mortgage applicants is required to come up with 10% down and means the maximum loan-to-value (LTV) of 90%.
If the bad credit score is at or above 580 the Bad credit FHA mortgage applicants are eligible for maximum 96.5% FHA mortgage financing. 

The lender must downgrade and manually underwrite a mortgage that received an Accept recommendation if only the non-occupying co-Bad credit FHA mortgage applicants have a bad credit score.  Bad credit FHA mortgage applicants s with non-traditional or insufficient credit histories are eligible for maximum financing, but must be manually underwritten using the procedures in Handbook 4000.1 II.A.5. 

The bad credit score refers to 
• the bad credit score reported on the Bad credit FHA mortgage applicants’ credit report when all reported scores are the same.
• the lowest score where two differing scores are reported 
• the middle score where three differing scores are reported  

A bad credit score is determined for each Bad credit FHA mortgage applicants. Where the mortgage involves multiple Bad credit FHA mortgage applicants s, the lender must determine the bad credit score for each Bad credit FHA mortgage applicants and then select the lowest bad credit score for all Bad credit FHA mortgage applicants s.  Where the mortgage involves multiple Bad credit FHA mortgage applicants s and one or more of the Bad credit FHA mortgage applicants s do not have a bad credit score (non-traditional or insufficient credit), the lender must select the lowest bad credit score of the Bad credit FHA mortgage applicants (s) with bad credit score(s).   The lender must review the credit report to determine the Bad credit FHA mortgage applicants’ bad credit score, except for mortgages to be insured under Sections 247, 248, Streamline Refinances, and Assumptions.  

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