Can I buy a home with a 580 credit score?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Yes. A 580 credit score is the floor for an FHA loan with 3.5% down, which makes FHA the most common path for buyers rebuilding credit. Some lenders add overlays, but our FHA programs accept 580 with documented income and a clean recent payment history.
At 580 you'll pay FHA mortgage insurance and likely a slightly higher rate than a 700-score borrower, so it's worth asking whether a few months of credit cleanup could push you over 620 for a conventional option. We'll map both routes so you can compare the real monthly cost.
What a 580 score means for your loan
At 580, FHA is your main door in. You put 3.5% down and pay mortgage insurance. Your rate sits a bit above what a 700-score buyer gets. That gap costs real money each month, so it pays to know your options.
Some lenders add extra rules on top of FHA, called overlays. We keep ours light. With steady income and a clean recent payment record, 580 works. Bring the last two years of history and we will show you where you stand.
Small moves that lift your score
A few months of cleanup can change your whole deal. Pay every bill on time. Knock card balances below 30% of the limit. Leave old accounts open. Skip new credit before you apply.
Cross 620 and conventional loans open up. That can mean a lower rate and no lifetime mortgage insurance. We run both paths side by side so you see the real monthly cost of buying now versus waiting a season.