Let me make this a short post on FHA and credit scores.
There seems to be a great deal of misconceptions regarding FHA and credit scoring. Some ‘so called’ lending professionals are telling would-be borrowers that FHA will approve loans with credit scores of (insert score below 620 here) as if this is a hard and fast rule with FHA. Nothing, my friends, could be further from the truth. The reality is that it has more to do with the overall look of the credit report and, yep, you guessed it, compensating factors.
Welcome to the wonderful world of FHA.