August 3rd, 2010
Question: “I have heard that FHA home loans are easier to get than regular mortgages. It this true? I’m asking because I have a bad FICO score. Do FHA loans depend on your credit score, and if so how much?”
Yes, your credit score will be a factor in the approval / rejection process. But there are several things you should know about it, right off the bat:
- Credit is only one piece of the qualification process. Lenders will also look at your income, the current amount of debt you’re carrying, and other financial factors. So while a good FICO score will certainly help you get approved, there are other things you need to consider.
- Generally speaking, it’s easier for people with bad credit to get an FHA loan than a conventional loan (that’s not backed by the government).
