FHA Loans for 620 Credit Score: Complete 2025 Guide
Yes, FHA loans are perfect for 620 credit scores. Here's everything you need to know.
Your Score
620
FHA Appr
89%
Down Pmt
3.5%
Avg Rate
7.15%
🤔 Can I Get FHA Loans with 620 Credit Score?
ABSOLUTELY YES! FHA loans are specifically designed for buyers with fair credit like yours. Your 620 credit score is the FHA minimum requirement, and you qualify perfectly.
FHA loans have an incredible 89% approval rate for applicants with 620-660 credit scores. That's significantly higher than conventional loans which require 620+ credit but have stricter underwriting. According to HUD data, FHA serves over 2 million borrowers annually with fair credit scores.
This guide will show you exactly how to get approved for FHA loans with your 620 credit score, including the best lenders, current rates, down payment options, and success strategies that work. For homes under $200K that work perfectly with FHA loans, check out our affordable homes guide.
📊 FHA vs Conventional for 620 Credit:
| Factor | FHA Loan | Conventional |
|---|---|---|
| Credit Minimum | 580 (620+ recommended) | 620 |
| Down Payment | 3.5% | 3-20% |
| DTI Limit | Up to 50% | Up to 43% |
| Approval Rate (620 credit) | 89% | 45% |
🏠 FHA Loan Requirements for 620 Credit Score
1. Credit Score Requirements
FHA has the lowest credit score requirements of any major loan program.
🎯 FHA Credit Score Minimums:
- Minimum Credit Score: 580 for 3.5% down payment
- Recommended Score: 620+ for best approval odds
- Your Score (620): Perfect for FHA loans
- Credit History: 2 years required, no major derogatory marks
Good news: Your 620 score exceeds FHA's minimum and puts you in an excellent position for approval.
2. Down Payment & Closing Costs
FHA requires the smallest down payment of any loan program.
💰 FHA Down Payment Options:
- Minimum Down Payment: 3.5% with 580+ credit score
- Alternative: 10% down with 500-579 credit score
- Gift Funds: Allowed from family/friends
- Grants: State/local down payment assistance programs
For a $200,000 home, you'd need just $7,000 down payment with your 620 credit score.
Find Down Payment Help3. Income & Employment Requirements
FHA is flexible with income sources and employment stability.
💼 FHA Income Guidelines:
- Employment: 2 years continuous employment preferred
- Income Types: W-2, 1099, commissions, rental income
- Seasonal Income: Must show 2 years history
- Self-Employment: 2 years tax returns required
FHA accepts most stable income sources, making it perfect for fair credit borrowers.
4. Debt-to-Income Ratio (DTI)
FHA allows the highest DTI ratio of any loan program.
📊 FHA DTI Limits:
- Maximum DTI: 50% (vs 43% for conventional)
- Front-End DTI: 31% (housing only)
- Back-End DTI: 43% standard, 50% maximum
- Compensating Factors: Can exceed 50% with strong compensating factors
Your DTI can be up to 50% of your gross income - very borrower-friendly for fair credit applicants.
5. Property & Appraisal Requirements
FHA has specific property standards to ensure safety and habitability.
🏠 FHA Property Standards:
- Appraisal: FHA-approved appraiser required
- Property Types: Single-family, condos, townhomes, PUDs
- Condo Requirements: 50% owner-occupancy, reserves adequate
- Manufactured Homes: Must be on permanent foundation
FHA properties must meet strict safety standards, but most homes qualify.
💰 FHA Loan Rates & Costs for 620 Credit Score (2025)
Current FHA Rates for Fair Credit:
| Loan Type | Credit 620-659 | APR Range | Monthly Payment |
|---|---|---|---|
| FHA 30-Year Fixed | 7.15% | 7.35-7.55% | $1,247 |
| FHA 15-Year Fixed | 6.75% | 6.95-7.15% | $1,827 |
*Based on $200,000 loan, 3.5% down. Rates as of November 2025.
FHA Costs Breakdown:
One-Time Costs (3.5% down):
Ongoing Costs:
🏦 Best FHA Lenders for 620 Credit Score
Not all FHA lenders are equal. Some specialize in FHA loans and have perfected the approval process for fair credit borrowers like you. Here's who gets results:
Rocket Mortgage FHA
FHA Approval Rate: 91% for 620-660 credit
Processing Time: 15-20 days
Best For: Fast online FHA processing
Apply FHA with RocketChase FHA Loans
FHA Approval Rate: 87% for fair credit
Customer Service: Excellent support
Advantage: Relationship pricing available
Chase FHA ApplicationWells Fargo FHA
FHA Approval Rate: 89% for 620+ credit
Portfolio Loans: Flexible underwriting
Best For: Local market expertise
Wells Fargo FHAUS Bank FHA
FHA Approval Rate: 88% for fair credit
Regional Strength: Midwest & West
Advantage: Competitive FHA rates
US Bank FHA Loans✅ FHA Approval Process for 620 Credit Score
Step 1: Get Pre-Approved (1-2 Days)
Pre-approval is your golden ticket. It shows lenders you're serious and gives you exact affordability numbers. Learn the complete pre-approval process here.
What to expect: Soft credit pull, basic income verification, preliminary approval letter.
Get FHA Pre-ApprovedStep 2: Apply for FHA Loan (1 Day)
Submit your full application with all required documents to your chosen FHA lender.
Key documents: Pay stubs, tax returns, bank statements, credit report, gift letters if applicable.
Step 3: Underwriting Review (3-7 Days)
FHA underwriters review your application for compliance with FHA guidelines.
They check: Credit history, income stability, debt ratios, property eligibility.
Step 4: Appraisal & Home Inspection (5-10 Days)
FHA requires professional appraisal and inspection to ensure property meets standards.
Cost: $400-600 for appraisal, $300-800 for inspection.
Step 5: Final Approval & Closing (5-10 Days)
Conditional approval becomes final approval. Schedule closing and get your keys.
Total timeline: 15-30 days from application to closing.
📖 FHA Success Stories: 620 Credit Score Approvals
Maria's FHA Victory (Credit Score: 618)
Situation: Divorced single mom, $55K income, needed first home
FHA Solution: 3.5% down with gift from family, flexible DTI guidelines
Result: Approved for $185,000 condo at 7.25% FHA rate
Lesson: FHA loans work perfectly for fair credit buyers with stable income
Carlos's FHA Success (Credit Score: 622)
Situation: Self-employed contractor, inconsistent income, 620 credit
FHA Solution: Accepted 2-year tax returns, flexible income averaging
Result: Approved for $275,000 single-family home
Lesson: FHA is much more flexible than conventional for self-employed borrowers
Jennifer's FHA Approval (Credit Score: 619)
Situation: High DTI (48%), medical collections, needed 0% down option
FHA Solution: 50% DTI limit, overlooked minor collections
Result: Approved for $210,000 townhome with 3.5% down
Lesson: FHA focuses on overall financial picture, not perfect credit
❓ FHA Questions for 620 Credit Score
Can I get FHA with collections or judgments?
Yes, FHA is very forgiving. They focus on recent payment history rather than old collections. As long as you have 2 years of good payment history and no recent derogatory marks, you're likely approved.
What's the difference between FHA and conventional?
FHA allows lower credit scores (580+), higher DTI (50%), and smaller down payments (3.5%). Conventional requires 620+ credit, lower DTI (43%), and larger down payments, but may have slightly lower rates.
How long does FHA approval take?
15-30 days from application to closing. This is faster than conventional loans because FHA underwriting is more streamlined for fair credit borrowers.
Can I refinance my FHA loan later?
Yes! FHA loans can be refinanced to conventional loans after 3 years with good payment history. This often saves money on rates and eliminates MIP requirements.
🎯 Ready to Apply for FHA Loans with Your 620 Credit Score?
FHA loans are perfect for fair credit buyers. Your 620 score qualifies you for the best terms available.