FHA with less than 620 credit scores and cash out updates.

Over the last 3 months, most lenders have increased the minimum credit scores needed for an FHA loan to 620. Nova still have minimum credit scores of 580 for FHA loans and in many cases require no NO minimum credit scores for Streamlined refinances. We still have less than 30 day closings where most other lenders are 60-90 days in underwriting. Our FHA loans are still prices lower in rates and in fees compared to our competition. For several FHA loans we have seen rates as low as 4.625% for 30 year fixed rates. FHA Streamlines as low as 5%!!! If you have a FHA loan and your rate is 5.5% or higher you should have your loan reviewed.


FHA cash out loans will temporally have the maximum loan to value capped at 85%. FHA is trying to lower its exposure to being the only option for borrowers cashing out equity above 85%. We do no know when FHA will go back to allowing borrowers to cash out up to 95%. I would assume it will be several months before FHA will start 95% cash outs again.