September 13, 2011
FHA home loans take into account a variety of factors when a lender is trying to determine a borrower’s potential as a credit risk.
While the FHA does look for a record of on-time payments and other factors that make a borrower a good risk, the rules for FHA loans also require the borrower to use credit score information to help make the determination to approve or deny an FHA mortgage.
FHA rules state, “When a credit score is available, it must be used to determine eligibility for FHA insured financing.”
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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