Can I get an FHA loan if my credit score is 615?

Question: “I’ve heard that FHA home loans are good for first time buyers who don’t have perfect credit. Can I get an FHA loan with a credit score of 615 and a decent down payment? Any advice would be much appreciated.”

Only a lender can tell you if you qualify for a mortgage with a 615 credit score, whether it’s an FHA loan or a conventional mortgage. But I would say you have a good chance.

In January, the Department of Housing and Urban Development (HUD) announced some changes to the FHA loan program. Among other things, borrowers must now have a minimum FICO credit score of 580 to qualify for the FHA’s 3.5% down payment program. People with scores below this mark will have to put at least 10% down. So with a credit score of 615, you would qualify for the 3.5% program — as long as everything else “checks out.”

Thus far, we have talked about your credit score and down payment. These are two important factors that can help you get an FHA loan. But they’re certainly not the only factors. Your income and debts will also play a role in the qualification process. In particular, the lender will want to know how much of your monthly income goes toward your debts. This is referred to as your debt-to-income ratio, or DTI.

At the time of this article, the maximum allowable DTI for FHA home loans was 39%. This includes your new mortgage payment. So if all of your debts (including the mortgage) soak up more than 29% of your monthly income, you might not be able to get an FHA loan. If your debt-to-income ratio is lower than 29%, you’re probably in good shape.

Related article: How to Apply for an FHA Loan

So let’s assume you have all of these things going for you. The mortgage loan is affordable for you, based on your income. You have a FICO credit score of 615. Your DTI ratio is 29% or below. And you have stable income / employment. Does this describe you? Then you should be able to get an FHA home loan with your current credit score. Good luck.