Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
FHA (Federal Housing Administration) loans are very flexible, and you may qualify for an FHA loan with bad credit. You will need at least three percent down, but if your credit is poor, it is in your best interest to put more down, to lessen the risk for the lender. Credit is only a part of the application. Down payment and job history are equally important.
A previous foreclosure will not disqualify you for an FHA loan. Two to three years after the foreclosure date, you can apply for a loan. You may be asked for a letter stating why you had the foreclosure.
If you have had some late payments, or even collections, you will still qualify for an FHA loan as long as your overall credit picture shows responsibility. If you had a job loss and had a period of bad credit history but then showed improvement, the FHA will still approve your loan.
- FHA Loans for a First-Time Home Buyer
- 3 Reasons Banks Reject Short Sales
- What Lenders Don't Reveal About Home Equity Loans
- 3 Factors that Can Negatively Affect Your Mortgage Application
- Short Selling a Rental Property
- Should You Refinance? Make Sure the Timing is Right
- Appraisal Basics
- Alternatives to Getting a 2nd Mortgage
- Low Down Payment Loan Qualification