Connecticut Real Estate Attorney Law Blog

FHA Minimum Credit Scores

This is a very interesting and informative post about the new FHA minimum credit scores going into effect very shortly.  It also discusses the special effect that this will have here in Connecticut, with our own CHFA loan programs.  The FICO scores seem to always be getting more important.  I hope that congress requires that they be made more easily available, like the annual free credit report.

Via George Souto NMLS# 65149 FHA, CHFA, VA Mortgages Connecticut:

Yes you read the title correctly we now have FHA Minimum Credit Scores.  For as long as I have been a Loan Officer, FHA has not had minimum credit score requirements, but as of October 4, 2010 that will change, FHA will implement minimum credit scores for all case numbers assigned on or after October 4, 2010. 




For most Lenders this change will not change anything, because many Lenders and Investors have implemented their own credit score limits on FHA Loans already.  Most Lenders in Connecticut are requiring a minimum credit score of 620 on FHA Loans.  So this change will not have much of an impact on regular FHA Loans here in Connecticut.  However, it will have a HUGE impact on Loan Programs like our Connecticut Housing Finance Authority (CHFA) Loan Program.

CHFA is a quasi government agency that subsidizes Loans/Mortgages for First Time Homebuyers.  CHFA Loans are backed by FHA, but CHFA is the Investor and they follow FHA Guidelines when it comes to minimum credit scores.  Since FHA up until now did not have a minimum credit score, CHFA would do the loan as long as the Borrower met all other CHFA Loan Program Guidelines.  It was not unusual to see CHFA Loans approved with credit scores around 550.  With this new change all CHFA Loans/Mortgages insured by FHA will now have to meet the new FHA Minimum Credit Scores.

Fannie Mae, also has some new changes, and I will post them in my next blog, so stay tune.


Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308, [email protected], or visit my McCue Mortgage Homepage.



About the author:  Attorney Begemann is a member of the Connecticut Bar and practices real estate and business law in Connecticut.  As an experienced real estate attorney he represents individuals and lenders in residential and commercial loan closings across Connecticut, including the purchase, sale and refinance of real estate.

Attorney Paul H. Begemann, 2764 Whitney Avenue, Hamden, CT  06518

Phone 203-230-8739                                       Fax 800-483-1904



6 commentsPaul Begemann • September 25 2010 05:09PM
New FHA Short Refinance Program
HUD recently announced a new refinance program for underwater borrowers. They would be able to obtain, with their existing lender's cooperation, a refinance into an FHA loan. You must be current and owner-occupied and owe more than the house is… more
Hamden, CT Restaurant Week!
The Hamden Chamber of Commerce together with the Town is sponsoring a restaurant week in Hamden, September 20 to 26, 2010. Hamden, CT has a great mix of restaurants, casual to fine dining, from pizza to the latest international exotic trend and… more