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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.

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