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Buying a home with a low credit score, or none
The published standard is a 580 score. Below that, or with no score at all, a file can still be reviewed as an exception. Here is how it works.
The published standard
The published standard of the Earned Equity Program is a credit score of 580 or higher. Lenders use the middle of three scores, or the lower of two.
Your credit report should also show at least two accounts, called tradelines, with 24 months of history. Alternative tradelines may be considered.
Below 580, or with no score
Below 580, or with no score at all, the file is reviewed as an exception, and it needs strong compensating factors. That path is real, but it is not automatic, and nobody should promise it to you.
Past credit problems
Chapter 7 bankruptcy
It can be eligible once it is discharged by closing.
Chapter 13 bankruptcy
It can be eligible if it is discharged, or if it was filed 12 or more months ago and you can show 12 payments.
Foreclosure, deed-in-lieu, or short sale
Not allowed within one year of closing. Some exceptions may apply.
Your rent history matters
The program wants to see 12 months of housing payments you can document. For most people, that is rent.
Without any documented housing history, the standard rises to a 640 score plus three months of reserves. Reserves means money that stays in your account after you close.
Frequently asked questions
+Do I need a credit score?
The published standard is 580 or higher, using the middle of three or the lower of two from a tri-merged bureau, with at least two tradelines showing 24 months of history. Below 580, or with no score at all, the file goes to an exception with strong compensating factors. That is a real path and people do get through it, but it is not automatic and nobody should promise you it is.
+Do I need a down payment?
Yes. A minimum 3.5% down payment has to be documented. If your file has no exceptions, that 3.5% is the only amount verified before closing. If there is an exception in the file, all cash to close and reserves get verified in your account, plus a letter explaining where the funds came from. Gift funds are acceptable for closing but not for reserves, and a gift of equity is not permitted.
+When does my name go on the deed?
The title becomes yours when you refinance into your own loan, take over the agency's FHA loan, or pay it off. Until then the agency holds title and you hold an equitable interest in the property.
The best first step is a full review
An EEP-certified loan officer will check every program you qualify for, including a regular FHA mortgage, so you choose knowing all your options.
Want to see where you stand today? The six-question tool, Am I home ready?, does not ask for your email. It is not an approval, just a first step.
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