520 Credit Score Mortgage
A 520 still lives in the FHA 10%-down band. The work now is steady cleanup that carries you toward 580.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
At 520 your only realistic mortgage is FHA with 10% down. That has not changed from 500 or 510, because FHA holds the 10% rule all the way to 579. What does change is how much runway you have to build: a 520 with a clear cleanup plan can reach 580 and the 3.5% down payment that comes with it.
What 520 Can Reach
FHA permits 500 to 579 with 10% down, so 520 qualifies on paper. The catch is the same lender overlay that stops most banks at 580. Mortgage Capital works with investors who write to the FHA floor, so a clean 520 file can still get placed.
Conventional, USDA, and VA all sit above you for now. The point of a 520 page is not to talk you into buying at 10% down; it is to show you the 580 break is close enough to plan around.
| Loan Type | Min Score | Your Position at 520 |
|---|---|---|
| FHA | 500 (with 10% down) | Possible — only path open |
| VA | 580 typical | Not available at 520 |
| USDA | 640 typical | Not available at 520 |
| Conventional | 620 | Not available at 520 |
Build Toward 580
A 520 usually carries one or two heavy items pulling it down. Settling a collection, dropping a card under 30% utilization, and stacking a few months of on-time payments are the levers that work fastest at this level.
We will read your report, name the items costing you the most, and map the 60-to-580 climb. Waiting for 580 turns a 10% down payment into 3.5%, which on most Florida homes is tens of thousands of dollars.
What each loan program does at 520
A score does not qualify you on its own. It opens some programs, closes others, and changes the terms on the ones in between. Here is where a 520 lands on each program we write in Florida, with the detail behind every verdict a click away.
FHA Loan at 520: Possible with 10% down.
VA Loan at 520: Possible with the right lender.
Conventional Loan at 520: Not yet — build toward 620.
Jumbo Loan at 520: Not available — focus on credit.
Refinance at 520: Streamline may still work.
Two things move these verdicts more than the score itself. The first is the lender, because most set their own floor above the program minimum and a file one lender declines can be straightforward at the next. The second is the rest of the file: steady income, a clean recent payment history, and cash left after closing will carry a borderline score further than a few extra points would.
520 Credit Score Mortgage: FAQ
It can be, through an FHA loan with 10% down and a lender that writes below the 580 overlay. Most buyers do better waiting until 580, when the FHA down payment drops to 3.5%.
FHA sets 10% down for every score from 500 to 579 and 3.5% at 580 and up. The rule does not ease at 520, which is why 580 is the target.
Often a few months if the drag is a collection or high card balance. We pull your report and give you a straight timeline rather than a rough guess.
Verify the details for your own situation against these government and agency sources: HUD FHA loan program and HUD Handbook 4000.1 (FHA rules).
Buying With a 520 Credit 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.