FHA Quick Reference for Realtors

Credit

Score Minimums

  • 600 minimum
  • No credit score is acceptable.  Three alternate trade lines (rent, utilities, cell phone bill, etc.) with 12 month history required

Bankruptcy

  • Chapter 7 bankruptcy: eligible after two years.
  • May be eligible after one year, if significant extenuating circumstances exist.
  • Chapter 13 bankruptcy: eligible after one year into the payment plan.

Foreclosure

  • Eligible after three years from foreclosure completion date. 
  • May be eligible after one year, if significant extenuating circumstances exist. 
  • Defaulted time share loans are not considered foreclosures 

Debt Ratio Requirements

  • 40/50 manual with compensating factors
  • 47/57 with DU/LP approval  
  • 31/43 for fico scores 600 - 639

Property Types