Effective Oct. 4, 2010, borrowers with a credit score below 500 will not be eligible for FHA-insured mortgage financing.
Borrowers with credit scores between 500 and 579 will be required to have a 10 percent down payment compared to the minimum 3.5 percent down payment required for borrowers with scores over 580.
Read HUD’s Mortgagee Letter 2010-29 for more details.
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