The answer to this question may depend greatly on the lender, the circumstances, and whether the borrower has compensating factors that might offset a lower FICO score. FHA loan rules spell out minimum credit scores and the lender will also have minimum credit score requirements which must be met.
The FHA loan rulebook, HUD 4155.1 in Chapter Four has rules which spell out some standards for credit for all applicants, co-borrowers, etc. Chapter Four says in part:
“If a credit score is available, it must be used to determine the decision credit score for the application and for eligibility for FHA-insured mortgage financing. A “decision credit score” is determined for each applicant according to the following rule: when three scores are available (one from each repository), the median (middle) value is used; when only two are available, the lesser of the two is chosen; when only one is available that score is used.”
Furthermore, FHA loan rules say:
“When determining the creditworthiness of borrowers, coborrowers, or cosigners, the underwriter considers their
• liabilities, and
• credit histories.”
So depending on these factors the lender may or may not be willing to work with a borrower and a co-borrower. Credit scores are important but they are only one part of the picture–the borrower’s payment history and other factors also play an important part in loan approval or denial.
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