580 Credit Score Mortgage
580 is the number that changes everything for first-time buyers. It is the line where FHA lets you put down 3.5% instead of 10%. This is where most low-credit buyers actually get into a home.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
A 580 credit score is the threshold the entire FHA program is built around. Hit it and your minimum down payment drops to 3.5%, which on most Florida starter homes means roughly $9,000–$14,000 instead of nearly triple that. VA also becomes realistic for eligible veterans. Conventional and USDA still want more.
What Opens Up at 580
FHA is the headline here. At 580 you get the program's low 3.5% down payment, and because FHA is built for buyers rebuilding credit, lender overlays are far less aggressive than they are at 500. This is the most common entry point for first-time buyers in Florida.
If you are a veteran or active-duty service member, most VA lenders will work with a 580, often with zero down. Conventional financing through Fannie Mae and Freddie Mac still wants 620, and USDA usually wants 640, so those stay out of reach for now. But for the majority of buyers at this score, FHA does the job.
| Loan Type | Min Score | Your Position at 580 |
|---|---|---|
| FHA | 580 | 3.5% down unlocked |
| VA | 580 typical | Available — often 0% down |
| USDA | 640 typical | Not yet |
| Conventional | 620 | Not yet — 40 points away |
FHA 3.5% down applies at 580+. VA has no statutory minimum; 580 is a common lender floor. Eligibility still depends on income, debt, and history.
Stack 580 With Down Payment Help
At 580 your biggest lever is not the loan itself, it is the assistance you can layer on top. Florida runs down payment programs through the Florida Housing Finance Corporation, including Hometown Heroes, which can cover most or all of that 3.5%. Pair the two and a buyer at 580 can sometimes get in with very little out of pocket.
It is also worth deciding whether to push for 620. Forty more points moves you into conventional territory, where mortgage insurance can be cancelled later and pricing improves. If 620 is within a few months' reach, we will lay out both options so you can choose with real numbers instead of a hunch.
580 Credit Score Mortgage — FAQ
It is good enough for an FHA loan with 3.5% down, which is how a large share of Florida first-time buyers purchase. You will not get the best interest rates available, but you can absolutely close on a home at 580 with the right loan and, often, down payment assistance.
FHA requires 3.5% down at 580. On a $300,000 home that is $10,500, and Florida down payment assistance programs like Hometown Heroes can cover much of it. VA-eligible buyers can often put nothing down at this score.
Sometimes. At 620 you qualify for conventional loans, where mortgage insurance can eventually be removed and pricing is usually better. If you can reach 620 in a few months, it may be worth waiting. We compare both paths with your actual numbers.
Buying With a 580 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.