First Lenders Mortgage

800-280-2777

Call Us Today Toll Free! Day Or Night

Minimum Credit Scores For New Jersey FHA Loans 

What You Need To Know

Remember the days when someone with a 500 credit score could qualify for a New Jersey FHA mortgage? Well after the Dodd/Frank Bill passed, FHA credit score requirements have been increasing. Nearly 20% of FHA loans are currently in default causing FHA lenders to be more cautious. This was due to not just the low credit scores but the high loan to values.

In this current mortgage market, to even be considered for a FHA mortgage, you MUST have a 620 minimum credit score to get the best rates. But we are seeing a trend that many other FHA lenders are now following.

Now, some FHA lenders are going down to as low as 580. While there are still many who still require a 620 minimum credit score, some NJ FHA lenders are imposing “pricing hits” to consumers who fall below 660 credit scores. So obviously there is an upward trend happening here with consumers looking to apply for an FHA loan.

Keep in mind, there are a “small few” of portfolio FHA lenders that will go below the standard 620 minimum credit score requirement to as low as 550, BUT they are hitting consumers with HEFTY pricing adjustments to get that FHA loan with credit scores below 620. It is still far better than the now defunct sub-prime alternatives for lower credit scores. First Lenders Mortgage has all FHA options available for their borrowers.

So if you are looking to obtain an FHA loan, be sure to check your credit scores early enough in the mortgage process, to give yourself ample time to see what you need to do to get your credit scores high enough today to avoid any and all pricing adjustments when applying for a New Jersey FHA mortgage. Also, First Lenders can assist you in credit repair if necessary or we can do a rapid re-score to get your credit score higher. Many mortgage companies will offer this at no cost. Be sure to ask!

njfhacredit