Can I buy a home with a 500 credit score?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Yes, at 500 to 579 you can still get an FHA loan, but you'll need 10% down instead of 3.5%. A handful of non-QM lenders also work in this range with larger down payments.
At this level, a few months of credit repair can drop your down payment requirement and your rate substantially. We'll map both paths — buy now at 10% down, or improve to 580 first — so you choose with full information.
Buying at a 500 score
A 500 score is the FHA floor with 10% down. Between 580 and up, FHA allows 3.5% down. So a little score growth cuts your cash to close sharply.
Lender overlays can raise these minimums. We work with lenders who follow FHA guidelines closely, which keeps 500 in play.
Lifting off the floor in Florida
At 500, a short credit push often pays for itself. Reaching 580 slashes your down payment. Reaching 620 opens conventional doors.
We show both routes: buy now or wait a bit for better terms. Bring your report and we will run the numbers side by side.