Is this true?

I do not know where you heard that but FHA has very specific lending requirements. Most importantly, most lenders have established a minimum credit score of 620. If you are a first time homebuyer, there are many benefits to purchasing a home with FHA. Some collections and derogatory items may not have to be paid before closing, 3.5% downpayment that may come from GIFT FUNDS, and a LOW 30 year fixed rate. If you have more questions, please email me directly so that we may discuss. Hope this helps.

It was true in the past that FHA had no minimum credit score requirement, but that has changed recently, You are now required to have a minimum 580 score. Even at the 580 credit score, it may still be difficult to find FHA financing because many lenders have increased that to at least a 620. You should have two years of steady employment, preferably with same employer or in the same line of work. The last two years Income should be the steady or increasing. Bankruptcy's must be at least two years old, with perfect credit since discharge. These are just a few of the guidelines so speak with a seasoned loan officer in your area for all the requirements and to see if you qualify. Gregorio Denny -- WeFixRates.Com

Most lenders including ourselves have a 620 FICO requirement. This is independent of the type of home or loan you are seeking including foreclosure, short sale, purchase or refinance. Hope this helps a bit.