An investigation by the National Community Reinvestment Coalition (NCRC) discovered that a majority of the top 50 FHA lenders have instituted policies that limit access to credit to working families in low- and moderate-income communities, and in communities of color, the very same communities that have been most harmed by the greed and malfeasance of Wall Street and the financial industry. The investigation’s findings were confirmed in consultation with FHA officials, best practice discussions with industry professionals, and by NCRC’s work directly with consumers and our member organizations around the country.
NCRC’s investigation reveals that too many of the country’s largest financial institutions are refusing to lend under the FHA loan program to consumers with credit scores between 580 and 640, despite the fact that FHA policy establishes a 100% guarantee for refinance and home purchase loans to a credit score of 580 for borrowers with a 3.5% downpayment. Our investigations shows the majority of top lenders have minimum credit score requirements of 620 or 640.
Download the PDF – FHA White Paper 12.8.10 
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