FHA Mortgages Down to a 500 Credit Score

LENDERLINE® is currently offering FHA loans down to a 500 credit score for properties located in the State of California.

  • The property must be located in the State of California.
  • Purchase or refinance.
  • 500 minimum credit score.
  • Borrowers with no credit score due to insufficient credit history are eligible under this loan program if they meet FHA non-traditional credit references
  • Maximum loan-to-value is 96.5% for borrowers with no credit score.
  • Maximum loan-to-value is 96.5% for borrowers with credit score of 580 or above.
  • Maximum loan-to-value is 90.0% for borrowers with credit score of 500 to 579.
  • Verification of rent or mortgage required for past 12 months. Borrowers living with family members and paying no rent or mortgage may provide an FHA budget letter.
  • Gift funds may be used for the entire down payment provided they are from an immediate family member related through blood or marriage.
  • Seller may pay borrower’s closing costs and prepaid items in an amount not to exceed 6% of the purchase price.
  • The property must be used as a primary residence. Second homes and investment properties are not allowed under this loan program.
  • First-time homebuyer OK.
  • Single family residence, PUD, FHA-approved condominium, and 2-4 units allowed.
  • Condominiums and townhouses must be located within an FHA approved project. To look up whether the condominium is FHA approved, click here.
  • Non-occupying co-borrowers are allowed under this program, and must be related to borrower by blood or marriage.
  • Debt-to-income ratios up to 50% allowed with automated underwriting approval.
  • Reserves are not required on 1-unit and 2-unit properties with automated underwriting approval. 3-unit and 4-unit properties will require minimum 2 months PITI reserves.
  • Housing and/or consumer late payments allowed within the past 12 months with automated underwriting approval.
  • Loan limits apply and are based on the county in which the property is located. To look up a specific county, click here.
  • Verification of rent or mortgage required for past 12 months. Borrowers living with family members and paying no rent may provide an FHA Budget Letter (attached) in lieu of verification of rent or mortgage.
  • Borrowers must be U.S. citizens or permanent residents with valid work authorization documents. No foreign nationals or undocumented ITIN workers are allowed under this program.
  • 30-year fixed rate.
  • No prepayment penalty.

To download a loan application
for our FHA loan program down to a 500 credit score:

LENDERLINE®is your FHA lender of choice. To discuss FHA loan requirements, call us today.

Questions? To get today’s interest rates or to receive a FREE mortgage consultation, call LENDERLINE® toll-free at 1-888-661-7888, or complete this form to schedule an appointment.

  • Obtaining a mortgage through Lenderline was by far the best loan process we have ever experienced.

    Jay M.

    Northridge, CA

  • We have purchased and/or refinanced 4 rental properties and 3 different residences... In all those years, we have never dealt with such a professional broker.

    Toni M.

    Westlake Village, CA

  • Lenderline got us a cash-out refinance using 24 months bank statements as income, no tax returns, no 1099, and no 4506-T. They had just the loan product we were looking for, their rates were good, and their attention to detail was outstanding. I have already referred some of my friends.

    Thomas J.

    Perris, CA

  • I was at the end of my rope. Other lenders had turned me down due to a recent short sale, and I had a hard money loan with a balloon payment that was coming due. Lenderline was able to pay off my hard money loan, lower my interest rate, and provide some additional cash out at closing. What a lifesaver!

    Hector R.

    Northridge, CA

  • I had no FICO scores, and Lenderline was able to get me an FHA loan with only 3.5% down. My mortgage payment is less than my rent was, and I am now a happy homeowner thanks to the awesome loan agents at Lenderline.

    Edwin D.

    Los Angeles, CA