Gobolts is correct. It's the lowest middle. Used to be lowest middle of the highest wage earner which makes more senses. Taking the lowest middle simply isn't prudent underwriting. If you have a spouse with relatively little credit which fires off a low score, why should that score impact your ability to purchase. It's nonsense, but also the world we live in today.

Thanks for reading,

LoansbyJW

FHA is not for low credit worthy people.  In fact many people say getting a FHA loan is difficult.  It is one of the easiest places to get a loan with less than 20% down.  FHA goes down to 3.5% down.  And they charge a chunk of change for MI to do it.  

My understanding is that there are differences in rates based on FICO scores.  However J or another lender could give you more information regarding your circumstances.  Its always good to speak with several lenders and understand what they do and what they say.  Rates change often so comparing rates is difficult.  My experience is that most lenders will use a credit score a buyer provides for initial GFE.  No need to run credit until you do some comparisons.  

Remember that the least expensive loan may not close.  I got spammed the other day form a company that says they offer lower fees because they don't use loan officers as they have an automated system.  They have "loan specialists" instead.  If something goes wrong it will be near impossible to get it back on track.   

For now the sort of Risk Based Pricing that Fannie and Freddie have does not exist for FHA insured mortgages.

Since Private Mortgage Insurance (PMI) is difficult to arrange, about the only place to go now is to the Government for a high loan to value mortgage. I've seen Doctors and other high wage, strong credit buyers use FHA to finance their home because they don't want to let all of their cash go into a non-liquid investment.

Thanks for reading.

LoansbyJW