“Credit Scores Continue Lower for FHA Borrowers”

“Credit Scores Continue Lower for FHA Borrowers”






A decrease in average borrower credit scores to 670 for FY 2018, the lowest average since 2008. This decline has continued in FY 2019 as:

      More than 28 percent of new forward mortgage endorsements in the first quarter of FY 2019 had credit scores less than 640; and

      More than 13 percent of new forward mortgage endorsements in the first quarter of FY 2019 had credit scores less than 620, nearly a 19 percent increase over the FY 2018 concentration.


Let’s translate the numbers. Over the last few years lenders have related guidelines and credit score requirements.

There are lenders that will do FHA loans down to a 500 credit score. Does that mean these are bad loans? I don’t think so but they have to be within reason and make sense.

I recently did an FHA mortgage for a client with a 530 credit score. You tell me if you would do the loan.

 The client was recently involved in a nasty divorce and the credit really suffered as both parties stopped paying credit card debts.

And a pivotal piece of the information; My client was buying a $360,000 home and putting $120,000 down. Good loan or bad loan?


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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com



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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

Comment balloon 6 commentsJoe Petrowsky • March 19 2019 02:30PM


Good morning, Joe Petrowsky by today's standards, it's unbelievable, but I suppose you found someone to do that loan!!!  he's almost at rock bottom....

Posted by Barbara Todaro, Marketing Agent for The Todaro Team (RE/MAX Executive Realty ) about 1 year ago

Morning Joe.

If I were a lender, you bet I would make that loan happen. Good for you, and him

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty) about 1 year ago

Good morning Joe. He gets the loan with that downpayment! Nice job. Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) about 1 year ago

Hi Joe... good loan, if you ask me. Part of the problem with so much lending these days is that if borrowrs don't "fit into a box" lenders can't/won't do anything for them/

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Realty) about 1 year ago

This is a good case to share. Large down payments should definitely be considered.

Posted by Roy Kelley (Realty Group Referrals) about 1 year ago

Good loan with that down payment.

Posted by Linda Piper (Planatek Financial, Inc.) about 1 year ago