520 Credit Score FHA Loan
A 520 reaches FHA with 10% down. Sixty points separate you from the 3.5%-down threshold at 580.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
A 520 credit score sits in the FHA 500–579 band, so the loan is reachable with 10% down. The approval depends on lender appetite and a clean recent history more than on the score itself. Sixty points to 580 is a realistic short-term goal, and clearing it changes the down payment dramatically.
FHA at 520 in Practice
At 520 lenders look hardest at the last 12 months. A year with no new lates and shrinking balances reads very differently than the same score with a fresh collection. The number is the same; the file is not.
Because the 10% down payment dwarfs the rate difference, most 520 buyers are better served by a short credit plan than by rushing the purchase. We run both scenarios so the choice is yours, not a guess.
| Factor | FHA at a 520 Score |
|---|---|
| Down Payment | 10% required |
| Lender Availability | Narrow — below-overlay only |
| Distance to 3.5% Down | 60 points (to 580) |
| Underwriter Focus | Last 12 months of payments |
520 Score FHA Loan — FAQ
Not for FHA. A 520 qualifies with 10% down through a lender that writes below the 580 overlay, provided your recent payments are clean. It is below the comfortable range, so reaching 580 first usually saves real money on the down payment.
The last 12 months. Underwriters weigh recent lates, collections, and balances heavily at this score, so a clean recent stretch can make a 520 approvable when an identical score with fresh damage would not be.
A FHA Loan With a 520 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.