580 Credit Score FHA Loan
580 is the score FHA was built around. It is where your down payment drops to 3.5% and the program opens up to first-time buyers.
By Onias Derilus, Mortgage Capital · NMLS# 1859012 · Last Updated: June 2026
A 580 credit score is the FHA sweet spot. Your down payment drops to 3.5%, lender overlays ease up, and you can pair the loan with Florida down payment assistance to cut your cash to close even further. For most lower-credit buyers in Florida, this is the loan and the score where buying becomes real.
Why 580 + FHA Works So Well
FHA is designed for buyers rebuilding credit, so at 580 the underwriting is forgiving on past blemishes and flexible on debt ratios. The 3.5% down payment on a $300,000 home is $10,500, and that is before any assistance.
Stack it with a Florida down payment program and the out-of-pocket can drop close to zero. The trade-off is FHA mortgage insurance, which usually runs the life of the loan. If you can reach 620 later, refinancing into conventional lets you drop it.
| Factor | FHA at a 580 Score |
|---|---|
| Down Payment | 3.5% required |
| Lender Availability | Wide — standard FHA territory |
| Mortgage Insurance | Upfront + monthly, life of loan |
| Stacks With | Hometown Heroes + county DPA |
580 Score FHA Loan — FAQ
Yes, 580 is the FHA threshold for 3.5% down, and it is the most common way Florida first-time buyers purchase. Underwriting is flexible at this score, and you can layer down payment assistance on top.
Not on the FHA loan itself — FHA insurance generally lasts the life of the loan. The usual play is to buy now with FHA, then refinance into a conventional loan once your score reaches 620 and you have equity, which lets you cancel it.
A FHA Loan With a 580 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.