The Federal Housing management has insured FHA loans since 1934. The FHA guidelines have changed quite a bit during that time. The minimum FHA credit score requirement was 640 at one point. Now, the FHA is insuring loans for house purchasers with fico scores as little as 500. Bad Credit FHA Loans A credit that is bad loan will help you be eligible for a home loan with low fico scores in accordance with no minimum income requirement. What is Bad Credit? From the financing viewpoint, the clear answer can vary greatly based upon the mortgage program.