Many people across Texas have been told by a lender that FHA is now requiring a minimum credit score for FHA streamline refinances.
This is not true!
What is true is that many investors have started requiring a minimum credit score for the FHA streamline program, but FHA has not implemented any sort of minimum credit score requirements.
So if you live in Texas and you have been told by a lender that FHA requires a minimum credit score, be sure to speak with a different lender — not all lenders are requiring a minimum credit score.
And when you are shopping for lenders, be sure to ask the question “are you requiring a credit score for the FHA streamline program?” and expect many lenders to say “yes”.
But some will say “no” — or at least as of today they will.
And remember, it could change at any time. But if you are living in Texas and currently have an FHA loan and a credit score under 620, you can still lower your monthly mortgage payment without having to completely re-qualify for a new loan. The Texas FHA streamline program was designed for people to take advantage of lower interest rates when they are available – regardless of their credit score!
Will this change in the future? It might. The trend is for lenders to start requiring a credit score verification for the FHA streamline program, so if you have a credit score below 620, act fast before the rules change.
