FHA loan rules do specify a minimum FICO score for borrowers who want to qualify for the lowest down payment of 3.5%. That FICO score is 580. However, lender standards can and often are higher than that number.
FHA loan rules do not prevent the lender from have more strict standards as long as they are applied in compliance with federal law, Fair Housing Act regulations, etc.
Individual borrower circumstances can and often do play a role in the kinds of terms a borrower is offered. FICO scores are only part of the picture. Borrowers who have late or missed payments on their credit report, for example, may represent a greater risk to the lender. Those with bankruptcy or other judgments may also face additional requirements for loan approval.
We aren’t suggesting that any of these things apply to the reader question, only that such factors can and do apply in many cases.
Borrowers are encouraged to shop around for a lender willing to offer the most competitive rates and terms–a borrower who does not feel their FHA loan is being offered at a favorable rate or with favorable terms and conditions is always free to look for another lender when appropriate.
Read more here:: FHA Loan FICO Score Requirements