Lowering the credit score requirement to 550 allows more consumers to qualify for FHA loans. This change is especially beneficial for those who may have faced financial hardships in the past but are now ready to move forward with buying a home. However, it’s important to note that, per FHA guidelines, buyers with a credit score under 580 will need to put down at least 10% of the purchase price. This is a requirement set by FHA, not Service First Mortgage, but it ensures that buyers can still get a loan with a lower credit score.

At the Johnston Team, we’re committed to not just qualifying more buyers but also helping them improve their credit. Our credit maximization efforts focus on moving buyers from a 550 credit score to 580, or even higher, to unlock better loan terms. By improving their credit score, borrowers can often reduce the amount they need to put down or qualify for more favorable rates. We offer personalized advice to help borrowers improve their financial profile, potentially saving them thousands of dollars over the life of the loan.

These expanded FHA loan options provide real estate professionals and lenders with a broader pool of potential buyers. We hope that these changes will benefit your business by allowing you to assist more clients in achieving homeownership. If you need marketing materials or additional information, we are here to support you.

At The Johnston Team, our goal is to make homeownership accessible to as many people as possible. If you have any questions, feel free to reach out to me, Stephanie, for more information on how we can help you and your clients succeed.