FHA loan requirements · 2026 · Florida and Georgia
What HUD asks for before you get an FHA loan
HUD sets the floor for every FHA loan. You need a credit score of at least 500, a steady two-year work history, debts that fit HUD's ratio limits, and a home you'll live in. A score of 580 or higher opens up HUD's maximum financing. Partner lenders can add stricter rules of their own, so your loan officer will show you both sets.
500
The lowest credit score HUD accepts for an FHA loan.
580
The score that opens up HUD's maximum financing.
2027
FHA starts accepting VantageScore 4.0 and FICO 10T on January 1.
Credit score: HUD's three tiers
HUD reads your credit score as a "Minimum Decision Credit Score." Your lender pulls a report from all three credit bureaus and uses your middle score. With a co-borrower, HUD uses the lower of your two middle scores.
580 or higher: eligible for HUD's maximum financing.
500 to 579: HUD limits the loan to 90% of the home's value, so you bring a larger down payment.
Below 500: not eligible for FHA.
Source: HUD Handbook 4000.1, LTV Limitations Based on Minimum Decision Credit Score; HUD FHA FAQ.
No credit score at all? You can still qualify. HUD lets an underwriter build your credit history from rent, utilities, phone bills and insurance payments. A person reviews your file by hand, which HUD calls manual underwriting.
The 2027 change: new credit score models
On October 8, 2026, HUD issued Mortgagee Letter 2026-11. For FHA case numbers assigned on or after January 1, 2027, lenders can submit VantageScore 4.0 and FICO 10T alongside Classic FICO. Both newer models look at your payment trends over time, and they can count rent and utility history.
HUD kept three things the same:
• the 500 and 580 cutoffs
• the three-bureau credit report
• one scoring model for everyone on the loan
If you rent, pay on time, and your Classic FICO sits just under 580, ask your loan officer whether a newer model could score you differently in 2027.
Debt-to-income: the two ratios HUD checks
Housing ratio: your new monthly house payment (principal, interest, taxes, insurance, mortgage insurance and any HOA dues) divided by your gross monthly income.
Total debt ratio: that house payment plus car loans, student loans, card minimums and other monthly debts, divided by the same income.
Most FHA files run through HUD's automated system, TOTAL Scorecard, which can accept higher ratios when the rest of your file looks strong. When TOTAL refers your file to a person instead, HUD's manual underwriting limits apply.
Manual underwriting and compensating factors
An underwriter reviews your file by hand when TOTAL refers it, when you have no credit score, or after certain credit events. HUD caps your ratios (housing / total) based on your score and on strengths it calls compensating factors.
500 to 579, or no score: 31 / 43, with no stretch allowed.
580 or higher: 31 / 43 with nothing extra.
580 or higher: 37 / 47 with one compensating factor.
580 or higher: 40 / 40 with no discretionary debt (no car loans, cards or other optional debts).
580 or higher: 40 / 50 with two compensating factors.
Source: HUD Mortgagee Letter 2026-11, Approvable Ratio Requirements (Manual). Energy-efficient homes may stretch to 33 / 45.
HUD counts these as compensating factors:
• Cash reserves: savings you can document, left over after closing.
• Minimal increase in housing payment: your new payment lands close to what you pay in rent today.
• Residual income: money left each month after all bills, measured against HUD's table.
• Significant extra income the underwriter didn't count as qualifying income, such as part-time work with a short history. This one counts only toward the 40 / 50 tier.
Ask your loan officer which of these your file already shows. Many buyers with a 500 to 579 score have one without knowing it.
Work history and income
HUD asks your lender to verify your most recent two years of employment and income. You don't need two years at the same job, and school or military service can count toward the history. Be ready to explain any gaps in writing. If you're self-employed, plan on two years of tax returns.
Past bankruptcy or foreclosure
A past credit event doesn't end your FHA chances. HUD sets waiting periods:
• Chapter 7 bankruptcy: two years from the discharge date. HUD allows 12 months if you can document a hardship beyond your control.
• Chapter 13 bankruptcy: possible after 12 months of on-time plan payments, with the bankruptcy court's written permission.
• Foreclosure or deed in lieu: generally three years.
Short sales, hardship exceptions and how to prepare are in FHA after bankruptcy or foreclosure.
The home and how you use it
• You live there. FHA covers your primary home. HUD expects you to move in within 60 days of closing and stay at least a year. A 2 to 4 unit building qualifies if you live in one unit.
• An FHA appraisal. An FHA roster appraiser checks the value and HUD's minimum property standards for safety, soundness and security.
• Loan limits. For 2026, HUD's one-unit limit runs from $541,287 in most counties up to $1,249,125 in high-cost areas. Your county sets your number.
• Condos. Check the building on HUD's FHA-approved condo list (opens in a new tab). Not on the list? Don't worry. FHA also allows a single-unit approval, often called a spot approval, for one unit in a building HUD hasn't approved. It depends on the building: HUD looks at how many units owners live in, how many already have FHA loans, unpaid HOA dues and reserves. A licensed loan officer can check your building before you make an offer. Our Florida FHA condo and flood zone guide lists HUD's conditions.
Residency and Social Security number
U.S. citizens and lawful permanent residents qualify on the same terms. Since May 25, 2025 (HUD Mortgagee Letter 2025-09), non-permanent residents can't get FHA loans. Every borrower needs a valid Social Security number.
Mortgage insurance
Every FHA loan carries a mortgage insurance premium (MIP): an upfront premium, usually added to the loan, and an annual premium paid monthly. The premiums pay for the insurance that lets FHA accept lower credit scores. Read how FHA mortgage insurance works.
FHA in Florida and Georgia
HUD's rules match in both states. The differences show up at closing and in local programs.
• Florida: condo approval and flood insurance come up often. You can pair FHA with Florida Hometown Heroes down payment help if you qualify.
• Georgia: a Georgia attorney handles your closing, and you sign a security deed. Read our guide to FHA loans in Georgia for county limits and Georgia Dream.
Compare every option, grants included, in FHA down payment assistance.
FLO Mortgage arranges FHA loans through partner lenders. We walk you through each step from our Flagler Beach office, by phone or online, anywhere in Florida and Georgia. Start with our FHA loan overview, or see how FHA stacks up in FHA vs conventional for first-time buyers.
FHA requirements: common questions
What is the minimum credit score for an FHA loan?
HUD's minimum is 500. A score from 500 to 579 limits the loan to 90% of the home's value, and 580 or higher qualifies for HUD's maximum financing. Partner lenders may set a higher minimum.
Can I get an FHA loan with no credit score?
Yes. HUD allows an underwriter to review you by hand using rent, utility, phone and insurance payment records. Your ratios then follow HUD's manual underwriting limits.
What debt-to-income ratio does FHA allow?
HUD's automated system can approve higher ratios for strong files. In manual underwriting, the limit starts at 31% housing and 43% total, and rises to 37/47 or 40/50 with compensating factors when your score is 580 or higher.
Is FHA only for first-time home buyers?
No. Anyone who meets HUD's rules and will live in the home can use FHA. First-time buyers choose it often because of the credit score rules.
What changes for FHA credit scores in 2027?
For case numbers assigned on or after January 1, 2027, lenders can use VantageScore 4.0 or FICO 10T in addition to Classic FICO (HUD Mortgagee Letter 2026-11). The 500 and 580 cutoffs stay the same.
How long after bankruptcy can I get an FHA loan?
Generally two years after a Chapter 7 discharge, or after 12 months of on-time Chapter 13 plan payments with the bankruptcy court's written permission. HUD allows shorter periods in some documented hardship cases.
Want to know where you stand?
Ask a licensed loan officer to check your credit and income against HUD's rules. Prefer to talk? Call (386) 882-9980.
This page is general education, not a commitment to lend or an offer of specific terms. All loans are subject to credit approval, underwriting guidelines and property eligibility. Not all applicants will qualify. FLO Mortgage arranges FHA loans through partner lenders and does not underwrite or fund them. Requirements come from HUD Handbook 4000.1 and HUD Mortgagee Letters 2025-09 and 2026-11, checked October 22, 2026, and may change. FLO Mortgage is licensed as a mortgage lender in Florida (MLD2621) and Georgia (#1835856), Company NMLS #1835856; Broker Owner Joy McCoy Flores, NMLS #1096400. Equal Housing Opportunity. Licensing & Disclosures.