What are the credit score requirements for an FHA loan?

The credit score requirements for an FHA loan are relatively flexible compared to traditional mortgages. While the FHA does not have a specific minimum credit score, most lenders prefer a score of at least 580 to qualify for a low down payment option. Individuals with scores between 500 and 579 may still be eligible for an FHA loan, but they will be required to provide a larger down payment. In addition to credit scores, lenders also consider other factors such as employment history, income stability, and debt-to-income ratio. It's important to note that each lender may have its own requirements and may also consider compensating factors to determine loan eligibility. Ultimately, it is advisable to contact multiple lenders and discuss individual credit situations to understand specific credit score requirements for an FHA loan.