House shopping is an exciting time, but it’s also a nerve-racking experience.
If you’re in the market to buy a house, finding a lender is an important first step. FHA loans are an excellent option if your credit score is 640 to 670.
The only problem is finding a lender that will tell you what interest rates you might qualify for.
But that’s not a problem with The Wendy Thompson Team!
We’ll show you what you need to do to make your dream of owning a home become a reality. Here’s a rundown of the best FHA loan rates for credit scores from 640 to 670.
First, we recommend you get started with a free, quick quote by state:
Best FHA Loan Rates for 640 to 649 Credit Score
Conventional loans can be hard to get. That’s part of what makes FHA loans so attractive: they’re designed for borrowers who don’t have perfect credit or a lot of money for a down payment.
A loan from the Federal Housing Administration (FHA) can be the answer you’re looking for if your credit score is 640, 645 or 649.
You’ll still need a down payment, but don’t worry. The down payment for an FHA loan is lower than you think.
You can take advantage of an FHA loan if you:
- Have a credit score of at least 600
- Save a down payment of 3.5%
- Get a financial gift to help with the down payment
If you’re wondering what interest rates you might pay, let’s take a look at what you can expect based on your credit score.
sample FHA loan Rates by Credit score: 640 to 649
| Fico score | APR | Mo. Payment |
|---|---|---|
|
760 – 850 |
3.375 % |
$1,508.00 |
|
700 – 759 |
3.375 % |
$1,508.00 |
|
680 – 699 |
3.5 % |
$1,525 |
|
660 – 679 |
3.5 % |
$1,525.00 |
|
640 – 659 |
3.625 % |
$1,542.00 |
|
600 – 639 |
4.875 % |
$1,718.00 |
*Updated 6/1/2021 – 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.
Best FHA Loan Rates for 650 to 659 Credit Score
Since an FHA loan is possible with a credit score as low as 500, you shouldn’t have anything to worry about if your credit score is between 650 to 659.
When shopping for a loan, watch for something called APR, or Annual Percentage Rate. The APR is the interest rate a lender charges when you borrow money.
A lower rate means you’ll save money because you’ll pay less in interest fees.
The interest rate you get on your loan depends on your credit score. We’ll talk about how to improve your credit score in a minute.
In the meantime, here are some sample rates for credit scores in the 650s.
sample FHA loan Rates by Credit score: 650 to 659
| Fico score | APR | Mo. Payment |
|---|---|---|
|
760 – 850 |
3.375 % |
$1,508.00 |
|
700 – 759 |
3.375 % |
$1,508.00 |
|
680 – 699 |
3.5 % |
$1,525 |
|
660 – 679 |
3.5 % |
$1,525.00 |
|
640 – 659 |
3.625 % |
$1,542.00 |
|
600 – 639 |
4.875 % |
$1,718.00 |
*Updated 6/1/2021 – 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.
Best FHA Loan Rates for 660 to 669 Credit Score
Once your credit score hits 660, you have a chance to get a better interest rate with your FHA loan.
And you know what that means? That’s right – lower payments!
Keep in mind that your debt-to-income (DTI) ratio, which measures how much money you have left after you pay your bills each month, is also important.
To improve your chances of getting an FHA loan, you should have a DTI of 50% or less.
Let’s see what rates you can expect with a credit score in this range.
sample FHA loan Rates by Credit score: 660 to 669
| Fico score | APR | Mo. Payment |
|---|---|---|
|
760 – 850 |
3.375 % |
$1,508.00 |
|
700 – 759 |
3.375 % |
$1,508.00 |
|
680 – 699 |
3.5 % |
$1,525 |
|
660 – 679 |
3.5 % |
$1,525.00 |
|
640 – 659 |
3.625 % |
$1,542.00 |
|
600 – 639 |
4.875 % |
$1,718.00 |
*Updated 6/1/2021 – 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.
Best FHA Loan Rates for 670 to 679 Credit Score
A credit score in the 670-range can offer lower interest rates than a credit score in the 660s. It might not seem like much, but lower interest can save you a lot of money.
For instance, if your credit score is 658 and you qualified for a loan with 3.65% interest, your monthly payment might be $875 on a $180,000 house.
A credit score in the 670s could lower your interest to 3.5%, and you’d only pay $812 each month.
It’s not a significant drop. But over a 30-year loan, you’d save over $14,000 in interest payments. And that’s a huge chunk of change.
sample fha loan Rates by Credit score: 670 to 679
| Fico score | APR | Mo. Payment |
|---|---|---|
|
760 – 850 |
3.375 % |
$1,508.00 |
|
700 – 759 |
3.375 % |
$1,508.00 |
|
680 – 699 |
3.5 % |
$1,525 |
|
660 – 679 |
3.5 % |
$1,525.00 |
|
640 – 659 |
3.625 % |
$1,542.00 |
|
600 – 639 |
4.875 % |
$1,718.00 |
*Updated 6/1/2021– 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.
Easy Ways To Increase Your Credit Score
Having a higher credit score can mean a lower interest rate (and lower mortgage payments!).
So how can you boost your credit score?
- Pay your bills on time
- Keep credit card balances low
- Pay down your credit cards and loans
- Don’t close unused credit cards (even if they have a $0 balance)
- Don’t open too many new credit accounts
- Check for mistakes on your credit report
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!
Let’s find your new house!
Before you start looking at houses, remember that the wrong lender can make buying a home miserable. We’ve seen it all and know what it takes to have a good experience.
We’ll help you pick the right lender for an FHA loan based on your credit score.
Are you ready to get out there and find your dream home? Call The Wendy Thompson Team today!
Unique only to the Wendy Thompson Lending Team is our:
Deciding on the right FHA lender is the most important decision you will make. Choosing the wrong lender can result in you losing your dream home or costing you hundreds of thousands of dollars in more interest over the life of your mortgage.
Don’t make that mistake, contact the Wendy Thompson Lending Team today!
You can start the process by clicking the yellow ‘See if I’m Eligible’ button on the right side bar under the ‘Start your quote for a Home Loan’ or call Wendy’s Team directly at (901) 250-2294, to get started on living the American Dream in the home of your Dreams!
Understanding FHA Loan with 640 Credit Score
Are you wondering how many individuals secure an FHA loan with a 640 credit score? While the exact number isn’t publicly disclosed by the Federal Housing Administration (FHA), it is a vital query for many prospective homeowners. Here’s what you should know:
How Many Get an FHA Loan with Under 640 Credit Score?
According to a 2022 study by the Mortgage Bankers Association, about 15% of all FHA loans were sanctioned to individuals with a credit score below 640. It suggests that obtaining an FHA loan with 640 credit score is indeed a possibility, as hundreds of thousands have achieved this.
FHA Loan Eligibility and Credit Score Criteria
The FHA doesn’t stipulate a minimum credit score, but lenders usually seek a score of at least 580 for a 3.5% down payment. Those pondering an FHA loan with a 640 credit score have a reasonable chance but do note that terms might be more favorable with an FHA loan 670 credit score or higher.
It’s essential to understand the fluidity in the criteria, and staying informed about current standards, including any changes post-September 2021, is beneficial.
Advice for Prospective Borrowers
If considering an FHA loan with a 640 credit score, it is wise to:
- Shop around and compare rates from various lenders.
- Be prepared for possibly higher interest rates and a larger down payment.
- For the most recent information, reach out to FHA-approved lenders in Tennessee.
Minimum Credit Score for an FHA Loan
While there’s no fixed minimum credit score for an FHA loan, lenders usually follow these guidelines:
- 580 Score: Generally enables you to qualify for a 3.5% down payment.
- 500-579 Score: You may qualify but typically need a larger down payment of at least 10%.
- No Credit Score: Demonstrating creditworthiness through other means might still help in securing a loan.
Interest Rates on FHA Loans
Securing an FHA loan with a 640 credit score can also affect the interest rate offered. While these rates are determined by individual lenders based on various factors including the market conditions, your credit score remains a critical element.
Key Considerations for Interest Rates
- Market Dynamics: Influenced by economic indicators and can change daily.
- Credit Score: A higher score generally fetches a more favorable rate.
- Loan Type and Term: Different FHA loans and terms offer varied interest rates.
- Down Payment: Larger down payments may afford lower interest rates.
For personalized and up-to-date rate quotes, consult FHA-approved lenders directly.
