580 Credit Score Mortgage Guidelines How to Get Approved

Our exclusive low credit score FHA loan program can be used to purchase or refinance any home. Many improvements have been made to this Automated or manual underwriting FHA program.

Minimum credit score home loan reduced to 560 with a 10% down payment. With a 580+ credit score you’ll only need 3.5% down.

Florida Buyers and borrowers please use the contact us Tab to your left with questions.

The 580 credit score mortgage is a great way back for borrowers that have compensating factors to get approved for a home loan. Compensating factors are other qualifications that make up for the low credit score. A long time on the job, extra savings (reserves) beyond the 3.5% minimum down payment, proof of on time rent (housing) payments for the past year or two, these are just a few examples of things that can make up for having a low credit score with a manually underwritten FHA loan.

FHA manual underwriting is what makes it possible to close home loans for people with bad credit scores. The underwriter will review your loan file carefully, looking at your credit explanation letter, your most recent twelve months payment history, your income, and employment history.

This FHA 580 credit score mortgage is a big help for first time home buyers that don’t have a large enough down payment, or 620 to 660 and up credit scores for a conventional home mortgage. Home prices in Florida are at record lows and for one of the first times in history it is actually cheaper to own your own home than it is to rent.

Please check out our credit guide and FHA Guide. Both of these sections contain tutorials on how to get a first time buyer home loan and how to get your credit score above 640.

Besides your credit score here are some other things that our FHA underwriters will look for when approving your loan.

  •  No new derogatory accounts opened in the past 12 months, medical collections do not count against you.
  • Judgements must be paid off or in repayment plan
  •  Ch 7 BK: must be > 2 years discharged, no late payment after BK allowed
  • Ch 13 BK: eligible after 12 months of payments with approval of trustee, no late payment after BK allowed
  • Foreclosure: eligible after 3 years if no late payments post foreclosure*

*Under the back to work FHA loan program you can have a foreclosure as long as the property has been removed from your name for 12 months and you can prove a decrease in income caused the problems.


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    • admin says

      Your mid score is 627, as long as you meet all of the other qualifications (income history) for an FHA loan you should qualify. You should also have a 12 month housing (rent) payment history. The condo must be FHA approved. If you fill out the online application we can have a better idea of your exact situation in order to help you with accurate answers.

  1. says

    What do you think? I have a 585 score, 2yrs rent history, and 2 years car payment history with other blemishes. My debt to income is around 40.

  2. says

    We have a 580-704 credit range between the three credit companies. We have a charge off/vehicle that we have been fighting forever. We need a home asap, and are having many troubles. We have a good down payment,but nobody will help. What do you think? But, we have rented the home we are in now for 8 years, and have only a car pmt in good standing for past two years. My husband has a great job history, but just switched jobs to out of state job, and we are trying to relocate. What do you think?

    • admin says

      As long as the charge-off was more than two years ago then you should be approved for our 580 credit score mortgage. Please complete the online application or request a printable loan application via email using the submit form.

      If you are purchasing in Florida and have 40% down we can also approve you for our hard money loan.

      • al heatley says

        Im interested in your 580 home loan.. my mid line score is 580.. i am currently in a rent to own home in Derry NH.. i have been in this home approx. 18 months have never been late or missed any payments.. 17500 mo.. also, i have a long term income of 120,000 yrly…anyway, my time on the agreement is almost up.. (aug) they wont extend,so i need to get a mortgage or move.. your thoughts..

  3. justme says

    I have about 35,000 cash to put down on a home for 73,000 my credit score is 580the my fiancée is about the same….I just started working again I have been in my apartment for 3the yrs never been late on renta I can supply a letter my fiaworks as well what do u think

  4. Aaron says

    My credit score is 599 my wifes is 607 how hard is to get a home loan. We have 2 years verifiable rent history no late payments paid off 2 cars

  5. Hershel Soden says

    Looking for a loan on my mobile on 1/2 acre lakefront property approx 1800 squre ft.Credit score 796 to 826 between the three credit co’s also own a mobile in Illnois both are paid off,I want to remodel fl home 25,000 to 40,000? loan.

  6. daniel dresen says

    My situation… I have a 560 (equifax) 575 (experian) and a 622 (trans union). I have payments pending update from a rapid rescore to bring my credit balances to below 30%. One account was already updated which caused my scores to jump, on average, 18 points. With the holiday weekend, the rescore and normal scoring update is taking a lag so I am not sure where I am now, but with these numbers (and potential for more growth with the accounts paid up), 2 years of rental history/ deployment records (army), 1 year of on time car payments, 2 years of on time credit payments to my debt consolidation program, and a formal explaination explaining the late periods from deployment, would I qualify? I have put 4000$ down as an earnest deposit into escrow and close on June 22nd. Any advise?

    • admin says

      You’ll need an extension through the end of June. Based on what you are telling me here you will qualify. If you want to know for sure then provide a 1003 loan application (online or print got to left sidebar) and a copy of your credit report, explanation letter, paystubs, w2, and bank statement. I’ll put your file in fron of an FHA underwriter and get you a pre approval within a day or two.

      What state are you in?

      Creditors report on the sixth so we would want to wait until June 8th to see your updated scores.

  7. David says

    My fiance and I are looking to buy a house by next june, problem is she just went from a ft posistion (20k/yr)at work to two part time posistions (25k/yr) by choice, and her credit scores are 725 plus .
    My credit scores are 588 and i think the other two are 570 ish pending any increases.
    No coll, or chargeoffs in 3 or 4 years. My job varies 40-50k/yr
    She only has 130/month cc pymt a month for dti
    my pymts for dti is 663, car loan, personal loan, and child support.
    3.5 % for down.

    Is 580 mortgage an option? and if so .. how long does the manual fha under writting take so we know when to start application. thanks!

    • admin says

      Yes your loan can be done with 5% down. Feel free to apply online and we will get you pre approved.

  8. Sonia Parson says

    Is there someone I can call about getting a loan in Houston, TX? My husband makes 33k and we have 5K down and he has a score around 610 or so. Does this sound workable?

  9. anson says

    I have a 587 middle with foreclosure 3 years ago. 12 years on job, car payment on time for 2 years, 2 new credit accounts paid on time for 6 months. Main debt is student loans. Some collections. Looking to borrow 120k.

  10. James Simpson says

    Wife has low 500 scores i have low 600 scores, no late payments on car note and bank accounts have been in good standing for the most part. With $5000 down what price range should we looking into purchasing. We are currently pay $1100 a month in our current place but have low income jobs together we make about $50,000 a year. Our rent is always paid on time and we only have one car payment, son is about out of day care so thats $480 bucks coming into the home. Can anything be done? I dont want to submit and application, get my credit RAN and nothing come out of it. We live in the Peach State!



  11. Char971 says

    My score is 619, husband is 590. We are self-employed in the home improvement industry (now doing property preservation) with a foreclosure in 2007, and both have repos last spring. We live in Maryland. Is there a program (there used to be, but not sure if one exists now) that will allow us to pay off current debt & purchase with the same loan or is this only available for a refinance? Thanks.

    • admin says

      If you are asking if you can borrow more than the purchase price and get cash at closing, no. You could buy 24 months after the repo(s) with just 3.5% down though.

  12. CC says

    I have read the comments regarding credit scores mine is 599. What is the requirement for job history does less than 2 years at current job qualify? And would it help to have a co signer (parent – good scores) ? Thanks!

    • admin says

      You need two years in the same industry. Different jobs are OK. OR school for a specific industry plus newly employed with same industry is OK. OR 6 months income from self employment on a tax return

      • CC says

        Okay thank you – I had a gap of employment for 7 weeks but was employed within the same field. Would the two years begin after the gap?

        • admin says

          Your gap is fine. You should apply for pre approval with DU from fannie mae once you have a down payment saved up.

  13. Roger Monk says

    We both work as nurses with income after deductions of about 6K monthly. A bankruptcy about 4 or 5 years ago. Credit score of about 540 /560 – currently renting. We do have a large $45,000 as a down payment toward a $ 139,500 asking price. we live in Ohio. Was wondering what you think of our possibilities?

    • admin says

      Do you know your credit scores?

      BK after 2 years have passed is fine. You’ll need at least a 560 credit score for us to get an approval

  14. Chase Andrew says

    My credit scores are 603/596/573. I receive Child Support of $800 per month and SSI of 1238 per month for children. I have some collections, but positive accounts as well. I have a car note of $446 a month and a credit card bill of $25 a month. Can I get approved for an 88k condo here in Michigan?

    • admin says

      you have up to about 1000 in allowed monthly expenses on credit and new mortgage loan. With 475 in debts that allows a payment with taxes, insurance, HOA fees of up to $525 for you. I think you may want to reduce the car note payment or pay it dow to 10 months left and it wull not count in the 1000 debt limit.

  15. Felicia King says

    I have some charge off, 16yr job history, 16 rs rental same address, credit score is 569. I also have a down payment of up to 5% on a $170,000 loan. Can I get a loan and should I go ahead and payoff the charge-offs prior to applying?

  16. Mr Wilson says

    My score is 576. And I quilfy for a VA loan. I live in Florida. I just have 12000 in student loans. I make about 4000 a month. Is it possible to get a home around 90k

    • admin says

      Please send me a message through the contact form with your state and I will have a loan officer servicing your area contact you.

  17. Lanamae B says

    My husband and I have been trying for over a year to buy a house here in Georgia. Everyone wants at least a 620 credit score. Last time he credit was run (June or July) it was 603 (equifax). We have been told that FHA loans require a 620. Is this a special type of loan? Or one only you offer? Could we buy a (new) mobile home and land with this loan? Thank you so much!

    • admin says

      Send me an email through the contact tab and I’ll get you information about the low credit score FHA loan in Georgia.