Borrowers applying for a FHA insured loan must have at least a 580 middle FICO score. Compared to any other loan program, FHA is easier to qualify for, credit wise. Although FHA states that the minimum middle credit score requirement is 580, there are some restrictions to this such as, sales price or loan amount, down payment, alternative trade lines, etc. Ideally, a borrower with a middle FICO score of 640 and above gets a better interest rate. There will also be no restrictions or very little overlay that a lender can impose on the loan if the borrower’s credit score is at least at 640. Needless to say, borrowers with credit scores less than 640 are not excluded in getting a FHA insured loan. On the contrary, they qualify for a FHA loan with a FICO score as low as 580 and therefore encouraged to apply.