Following FHA Credit guidelines, before providing approval for any type of loan, a lender will carefully analyze the overall integrity of the applicant’s credit history.

The FHA loan requirements state that those who have a favorable credit history with a long track of timely payments on their debts will be eligible for the loan that they have applied; however, those that have a credit history that displays poor financial choices, slow payments, and accounts that are delinquent are not considered to be proper candidates for the FHA loan.

If you are an applicant that has a few blemishes on your credit and have an interest in a FHA loan, it is important that you continue reading. Here, you will learn about the common credit guidelines that FHA lenders will use to approve or disapprove your loan.

Common FHA Credit Guidelines That Lenders Use to Approve a Loan

No Credit History, Whatsoever

In order to apply for a FHA loan, it is essential to have two lines of credit. If, for some reason, you do not have the sufficient amount of credit on your report, you will be pleased to know that the FHA does allow substitutions.

You will need to talk to an agent at Somerville National Bank to learn more about the approved substitutions.

Chapter 13

If you have filed a Chapter 13 Bankruptcy, you will be pleased to know that you could – potentially – be approved for a FHA loan. It must be established that you have been making satisfactory payments for at least a year, straight.

You will also likely require a written approval from a court trustee to obtain the loan. Furthermore, job stability, the re-establishment of good credit, and a detailed explanation of the previous bankruptcy may be required.

Chapter 7

If you have a Chapter 7 Bankruptcy in your history, you may still be approved for a FHA loan. According to the information on the FHA guidelines, a period of at least two years must have passed from the discharge date of the event. Job stability, the re-establishment of good credit, financial qualification, and an explanation of the event will likely be required.

Collections, Judgments, and Debts

The FHA considers a collection to be minor. It does not have to be paid in order to obtain approval for a FHA loan; however, judgments will need to be paid completely.

If you have a federal debt such as a tax lien or a student loan, you may be approved; however, if you are delinquent on federal debts, you will not be eligible to obtain a FHA loan.


In most instances, you will not be approved for a FHA loan if you had a foreclosure in the past three years; however, if the foreclosure was due to extenuating circumstances, you may qualify for an exception to be granted. That is, if you have re-established good credit since the event.

Late Payments

When applying for a FHA loan, the lender will analyze the pattern associated with your credit behavior. If you have had late payments, they could result in being disqualified; however, if you have established a good payment history since the late payments, you may be able to get approval for a FHA loan.

If you would like to learn more about the FHA loan and the approval process, contact Somerville National Bank today by visiting

One of our 6 locations