HUD to introduce credit-score requirement for FHA loans

07/18/2010 | CNNMoney

The Department of Housing and Urban Development said it is planning to require a 500 or higher credit score for borrowers to qualify for a home loan insured by the Federal Housing Administration. The move will have a limited effect as no borrowers with scores lower than 500 received an FHA-insured loan, but it is the first time a minimum standard has been in place. The change is part of an effort to lower the default risk to the FHA's loan portfolio, said FHA Commissioner David Stevens.

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