520 Credit Score Conventional Loan
Conventional starts at 620, so a 520 is not eligible yet. FHA carries you now while you build toward 620.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
At 520 a conventional loan is off the table for now, because the program floor is a firm 620. Rather than spin wheels there, the smart move is FHA today and a steady credit plan toward 620. A 520 that is clean and rising tends to climb faster than people expect once balances come down.
The 100-Point Climb
A 520 is 100 points from conventional eligibility. That is a real project, not a quick fix, but it is very doable over time with lower balances and a clean payment record.
Meanwhile FHA does not gate you out. At 520 it needs 10% down; at 580 that drops to 3.5%. By the time you reach 620 you will have both FHA and conventional to compare, which is exactly where you want to be.
| Factor | Conventional at a 520 Score |
|---|---|
| Conventional Minimum | 620 (firm) |
| Your Gap | 100 points |
| Use Now | FHA (10% down at 520) |
| Milestones | 580 → 620 |
520 Score Conventional Loan — FAQ
No. Conventional has a firm 620 minimum, so a 520 does not qualify. FHA works now with 10% down, and a credit plan toward 580 and then 620 opens better options.
It varies, but it is a real climb of about 100 points. Lowering credit card balances and keeping every payment on time are the biggest levers. Many buyers make steady progress over several months to a year.
A Conventional Loan With a 520 Score?
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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.