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FHA Loan Credit Score Requirements — What Score Do You Actually Need?

Credit score questions are at the top of almost every homebuyer’s mind, and for good reason — your score directly affects what you can borrow and at what rate. Here’s exactly how credit scores work within the FHA loan program.

The Minimum Scores

Credit Score Range Down Payment Required Underwriting Path
580 and above 3.5% AUS or Manual
500–579 10% Manual only
Below 500 Not eligible N/A

How Your Representative Score Is Determined

Lenders pull your credit from all three bureaus. Here’s how your score is selected:

  • Three scores: The middle score is used
  • Two scores: The lower of the two is used
  • One score: That single score is used

On a joint application, the lowest representative score of all borrowers becomes the decision score for the entire loan.

Example: Borrower 1 scores 695 (middle of three). Borrower 2 scores 615 (middle of three). The loan decision score is 615 — the lower of the two representative scores.

Lender Overlays

While FHA officially allows scores down to 580 (or 500 with 10% down), individual lenders may set higher minimum requirements through overlays. In practice, many lenders require 620+ for standard automated approvals. Working with a mortgage broker gives you access to multiple lenders, so your scenario can be placed with the right fit for your score.

No Credit Score? There Is a Path

If you have no credit score at all — no traditional credit history — certain FHA programs allow the use of non-traditional credit. This lets lenders document your payment history through things like:

  • 12–24 months of on-time rent payments
  • Utility bills (gas, electric, water)
  • Insurance premium payment history
  • Auto lease payments

For no-FICO borrowers: maximum DTI is 31%/43%, only 1-unit properties are eligible, and cash-out refinances are not permitted. But homeownership is still achievable.

Why 580 matters in dollars

The gap between 579 and 580 is not just a label. Illustrative example: on a $500,000 purchase, 3.5% down is $17,500 while 10% down is $50,000, a difference of $32,500. Either way the file also has to clear underwriting, so a score just above 580 can be harder to place than the table suggests; that is where lender overlays and a broker’s options come in.

How the representative score works

If the three bureau scores are 582, 611 and 598, the middle score of 598 is used. If only two bureaus report, say 640 and 655, the lower of the two, 640, is used. Remember that a mortgage lender typically uses scoring models that can differ from the free score on a banking app, so the numbers you see may not match exactly.

Moves that tend to help before you apply

  • Pay revolving balances down before the statement date so a lower balance is reported.
  • Keep older accounts open and avoid new credit applications, including store cards and auto loans, until after closing.
  • Dispute genuine errors with the bureaus early, since corrections take time to appear.
  • Never miss a payment while the application is open.
  • Ask us before paying off collections; the right sequence depends on the account and your cash needs.

Documents to have ready

Government ID, Social Security number, two years of addresses, and an explanation for any recent late payments or collections. If you have limited credit history, begin gathering 12 to 24 months of rent, utility and insurance payment records now.

Frequently asked questions

Does a higher score only change my approval?

No. Score also affects pricing and which lenders will take the file, so a modest improvement can lower your cost as well as widen your options. We compare options across the lenders we work with.

Should I check my score myself first?

Yes, review your reports for mistakes, but avoid applying for new credit while you do. Our guide to checking your score explains what to look for.

What if my score is high but my history is short?

A short history is not the same as a low score. If there is no score at all, non-traditional credit can be documented through rent and utility payments, within the limits described above.

Related guides

Practical Takeaways

  • 580+ is the standard minimum for 3.5% down
  • On a joint application, the lower co-borrower score drives the decision
  • Some lenders require higher scores through overlays — working with a broker helps
  • No credit score does not automatically disqualify you
  • A score of 580 versus 579 can mean $32,500 more cash on a $500,000 purchase.
  • Mortgage lenders may use different scoring models than free score apps, so expect differences.
  • Avoid new credit until after closing.