500 Credit Score FHA Loan
An FHA loan is the only mortgage a 500 score can reach, and it comes with a 10% down payment. Here is the honest path.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
FHA is the one loan program that allows a 500 credit score, and it requires 10% down at that level instead of the usual 3.5%. You also need a lender that writes below the common 580 overlay, because most will not. It is possible, but 580 changes the math enough that it is usually worth a short wait.
What 500 Means for FHA
HUD allows FHA scores from 500 to 579 with 10% down. Above 579 the down payment drops to 3.5%. So at 500 you are paying nearly three times the down payment of a buyer 80 points higher, on the same loan. On a $300,000 home that is $30,000 instead of $10,500.
The other hurdle is the lender. Most Florida lenders overlay FHA at 580 and will decline a 500 outright. Mortgage Capital works with investors who still lend in the 500–579 band, so the door is open if the rest of your file is clean and documented.
| Factor | FHA at a 500 Score |
|---|---|
| Down Payment | 10% required |
| Lender Availability | Limited — most overlay at 580 |
| Mortgage Insurance | Upfront + monthly, life of loan |
| Smart Move | Build to 580 for 3.5% down |
500 Score FHA Loan — FAQ
Yes, FHA technically allows 500 with 10% down, but only a lender that writes below the common 580 overlay will approve it. The rest of your file needs to be clean. For most buyers, reaching 580 first to get 3.5% down is the better move.
HUD sets FHA at 10% down for scores of 500 to 579 and 3.5% down at 580 and up. The higher down payment offsets the added risk of a lower score. That single rule is why 580 is such an important target.
A FHA Loan With a 500 Score?
Get matched to the right Florida loan for your score · Licensed FL mortgage broker NMLS# 1859012
Rates are illustrative only. APR and payments vary by credit score, loan amount, and market conditions. Subject to credit approval. Not a commitment to lend. NMLS# 1859012. Equal Housing Lender.