550 Credit Score Conventional Loan
Conventional needs 620; a 550 is 70 points away. The play is FHA now, conventional refinance later.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
A 550 credit score does not yet reach the 620 conventional floor, so conventional financing is not available today. The proven plan from here is FHA now and a conventional refinance later. That lets you buy without waiting for the full 70-point climb, then move to conventional once your score and equity catch up.
Buy Now, Convert Later
FHA at 550 needs 10% down, dropping to 3.5% at 580. That gets you into a home while conventional remains out of reach, so you are not sidelined waiting for 620.
Once you cross 620 and build some equity, a refinance into conventional can cancel mortgage insurance and lower the long-term cost. It is one of the most common and effective paths for buyers who start in the 500s.
| Factor | Conventional at a 550 Score |
|---|---|
| Conventional Minimum | 620 (firm) |
| Your Gap | 70 points |
| Step 1 | FHA purchase |
| Step 2 | Refinance to conventional at 620+ |
550 Score Conventional Loan — FAQ
No, conventional requires 620 and a 550 falls short. The standard plan is to buy with FHA now and refinance into conventional once you reach 620 and build equity.
FHA mortgage insurance generally lasts the life of the loan, while conventional PMI cancels at 20% equity. Refinancing once you qualify can remove that insurance and lower your long-term cost.
A Conventional Loan With a 550 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.