Best FHA Loan Rates with 600-630 Credit Score

by | Jun 16, 2021 | FHA

If you’re ready to buy a house, you need to figure out the loan process. An FHA loan that’s backed by the Federal Housing Administration is an excellent option if you’re in the market for a new home.

One big question that comes up time after time is, “How does my credit score affect my rate?

>>  Click here to check your credit score now.  (Soft pull)

If you’ve tried to find rates for your credit score that’s 630 or less, you’ve probably hit a brick wall.

Why don’t lenders just give it to you straight?

I’m glad you asked!

Because here at the Wendy Thompson Lending Team, we help you get the best rate. And we don’t beat around the bush about it, either.

If your credit score is 600, 605, 610, 620, 625, or 630, this article is for you. Keep reading to get real-life sample rates and payments based on your credit score.

First, we recommend you get started with a free, quick quote by state:

Best FHA Loan For Rates 600 to 609 Credit Score

Some lenders make you jump through hoops when your credit score is on the low end of the 600s. While you might not have as many options in this range, it doesn’t mean you won’t be approved.

In fact, FHA loans are designed for people just like you.

Here’s what you might expect your rate to be:

sample FHA loan Rates by Credit score: 600 to 609

FICO SCORE APR MO. PAYENT
700+ 3.375 % $1,508.00
660 – 699 3.5 % $1,525.00
640 – 659 3.625 % $1,542.00
620 – 639 Currently Unavailable N/A
600 – 619 Currently Unavailable N/A

*Updated 6/15/21 – Rates are based on a $250,000 home with a 3.5% down payment, and includes principal, interest, taxes and insurance.  Rates change often and differ based on your state, down payment, and loan amount.  Click here for correct rates based on your situation.  

Keep in mind that rates constantly change so it is best to use our rate checker below for an accurate rate.

CHECK EXACT VA RATES

Or click here to check your credit score for free.  (Soft pull)

To help you get approved, lenders look at other financial indicators like your debt-to-income (DTI) ratio.

DTI measures how much money you have in your pocket after you pay all of your bills – like your monthly mortgage and other debt payments.

Lenders like to see a DTI of 50% or less, so aim for at least that.

Best FHA Loan For Rates 610 to 619 credit score

The APR, or annual percentage rate, that you get with an FHA loan depends a lot on your credit score. The APR is how much you’ll pay the lender to borrow money to purchase a house.

Several factors go into your credit score. A few simple actions can boost your score and help you qualify for a better rate.

We’ll cover tips to improve your credit score in a minute.

Let’s take another look at those sample rates.

sample FHA loan Rates by Credit score: 610 to 619

Fico score APR Mo. Payment

700+

3.375 %

$1,508.00

660 – 699

3.5 %

$1,525.00

640 – 659

3.625 %

$1,542.00

620 – 639

Currently Unavailable

N/A

600 – 619

Currently Unavailable

N/A

*Updated 6/15/21 – Rates are based on a $250,000 home with a 3.5% down payment, and includes principal, interest, taxes and insurance.  Rates change often and differ based on your state, down payment, and loan amount.  Click here for correct rates based on your situation.  

A higher credit score usually means you get a lower APR, and that can lead to huge savings on your home loan.

CHECK EXACT VA RATES

Or click here to check your credit score for free.  (Soft pull)

Best FHA Loan For Rates 620 to 629 Credit Score

As you can see from the rate table, your APR doesn’t improve much with a credit score of 620 to 629 compared to 600.

But it is an improvement! And a tiny difference can mean big results for your FHA loan.

If your credit score is 610, your rate might be 4.875%. At 620, your rate could drop to 4.125%. That slight drop of 0.75% can save you over $40,000 in interest payments on a $250,000 home.

And that’s a huge chunk of change.

sample FHA loan Rates by Credit score: 620 to 629

Fico score APR Mo. Payment

700+

3.375 %

$1,508.00

660 – 699

3.5 %

$1,525.00

640 – 659

3.625 %

$1,542.00

620 – 639

Currently Unavailable

N/A

600 – 619

Currently Unavailable

N/A

*Updated 6/15/21 – Rates are based on a $250,000 home with a 3.5% down payment, and includes principal, interest, taxes and insurance.  Rates change often and differ based on your state, down payment, and loan amount.  Click here for correct rates based on your situation.  

Best FHA Loan Rates For 630 To 639 Credit Score

One of the biggest advantages of an FHA loan is the low down payment. You might qualify for a loan with only 3.5% down.

That means, on a $250,000 home, you wouldn’t even have to save up $10,000 for your down payment!

SAMPLE FHA LOAN RATES BY CREDIT SCORE: 630 TO 639

Fico score APR Mo. Payment

700+

3.375 %

$1,508.00

660 – 699

3.5 %

$1,525.00

640 – 659

3.625 %

$1,542.00

620 – 639

Currently Unavailable

N/A

600 – 619

Currently Unavailable

N/A

*Updated 6/15/21 – Rates are based on a $250,000 home with a 3.5% down payment, and includes principal, interest, taxes and insurance.  Rates change often and differ based on your state, down payment, and loan amount.  Click here for correct rates based on your situation.  

Or click here to check your credit score for free.  (Soft pull)

With your credit score sitting so close to 640, it might not take much to get you over the hump. The main factors influencing your credit score are:

  • – Late payments
  • – A previous foreclosure
  • – Not having enough credit history
  • – A Chapter 7 or Chapter 13 bankruptcy
  • – Having accounts in collections

Take a look at your credit report to see how you can improve your finances going forward.

5 Easy Ways To Improve Your Credit Score

If your credit score is 600, 605, 610, 615, 620, 625, 630 or 635, you can improve your credit score with a few simple strategies.

The first thing you need to do is pull your credit report. You can download a free copy of your credit report from all three credit reporting agencies at AnnualCreditReport.com.

Once you have your credit report in-hand, here’s what you do:

  • Dispute any inaccurate information (Spoiler alert: It’s easier than you think!)
  • Payoff delinquent accounts as quickly as you can
  • Make your payments on time, every time, to boost your credit score
  • Pay down high balances to improve your DTI ratio
  • Don’t sign up for any new debt

Want help to increase your credit score?

The Wendy Thompson Lending Team can do an in-depth assessment and tell you exactly how to improve it!

Getting the Best FHA Loan Rates: A Simple Guide

 

Looking to get the best rates on your FHA loan? Here’s a step-by-step guide to help you land a great deal:

Boost Your Credit Score:

Higher scores mean better rates. Pay bills on time and fix any mistakes on your credit report.

Handle Your Debts Wisely:

Lower your high-interest debts to improve your debt-to-income ratio and your chances for a good loan rate.

Save Up for a Down Payment:

A bigger down payment can get you a better rate and lower monthly insurance costs, even though FHA loans only require a 3.5% down payment.

Compare Different Lenders:

Talk to several FHA-approved lenders to find the best deal.

Get Preapproved:

Show sellers you’re serious and know your budget by getting preapproved.

Keep Improving Your Credit Score:

 

Some lenders offer better rates for higher scores, so keep aiming high.

Pick the Right Loan Term:

Choose a term that matches your financial plans; shorter terms often have lower rates but higher payments.

Show a Stable Job History:

Stick with your job to strengthen your application.

Avoid Big Financial Changes: 

Stay away from major financial shifts like changing jobs or taking on new debt during the application process.

Understand and Compare Fees:

Know the full cost of your loan by checking different rates and fees from various lenders. 

Lock in a Good Rate:

If rates are good, ask to lock in that rate for 30 to 60 days.

Consider FHA Streamline Refinancing:

Explore this option for lower rates and less paperwork if you already have an FHA loan. 

Check FHA Loan Limits:

Know the maximum amount you can borrow in your area.

Look for Down Payment Help:

Find programs that can assist with your down payment.

Talk to a Loan Expert:

Get advice tailored to your situation from a mortgage professional.

Understanding FHA Streamline Refinance Rates

Got an FHA loan and thinking about refinancing to get a better rate? Here’s what you need to know about the FHA Streamline Refinance program:

Rate Reduction:

This program mainly helps lower your interest rate and monthly payments.

Easy Process:

Enjoy a faster approval with less paperwork compared to standard refinancing.

Credit Score Matters:

Better scores usually get you better rates, but requirements can vary.

Keeping an Eye on Rate Trends:

Watch the trends to time your refinance just right and snag a lower rate.

Different Lenders, Different Rates:

Get quotes from various lenders to find the best offer.

Rate Lock:

Secure a good rate for 30 to 60 days so you won’t be affected by rate increases while processing your loan.

Choosing a Loan Term:

 

Pick a term that suits you; your choice can affect your rate.

To get the exact rates, contact FHA-approved lenders who can offer personalized advice based on your credit score and other factors. Remember, this program is for lowering payments, not for cash-out refinancing. Always work closely with your lender to meet all the program’s criteria!

Follow this guide, do your homework, and you’ll be on your way to securing the best rate for your FHA loan!

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