What is the minimum credit score required for a borrower to qualify for an FHA loan with a 3.5% down payment?

Correct answer: 580

FHA guidelines require a minimum credit score of 580 to qualify for the maximum financing of 96.5% LTV (3.5% down payment). Borrowers with scores between 500 and 579 may still qualify but are limited to 90% LTV (10% down payment). Scores below 500 are ineligible for FHA financing. 620 and 640 are common conventional loan thresholds, not FHA minimums.