A 580 score can meet FHA’s minimum threshold for 3.5% down, but approval still comes down to the full file: income, monthly debts, recent credit history, cash to close, and the property. This FHA loan with 580 credit score example shows the real math on a $300,000 purchase so you can see what the loan could look like before applying.
Duane Buziak, NMLS #1110647
Table of Contents
- What a 580 FHA score can qualify for
- A fully worked $300,000 FHA example
- FHA credit-score tiers
- What can stop an approval
- Start without a hard inquiry
- Frequently asked questions
What a 580 FHA score can qualify for
FHA guidelines permit a 3.5% minimum down payment with a credit score of 580 or higher. That is the FHA floor, not an automatic approval. A mortgage broker still has to match your profile with an FHA program that fits the credit history, debt-to-income ratio, employment pattern, assets, and property.
A 580 score is often most workable when late payments are behind you, collections are explained or resolved when required, and your income can support the proposed housing payment. A low score with a strong recent payment record can be more workable than a higher score with new late payments, undisclosed debt, or unstable income.
FHA numbers below are verified as of August 13, 2026. Individual broker and investor requirements can be more restrictive than FHA’s published minimums.
| Credit score | Minimum down payment | FHA eligibility position | Practical underwriting consideration |
|---|---|---|---|
| 580 and above | 3.5% | Meets FHA’s minimum score tier | Income, debts, recent credit, and property still require review |
| 500-579 | 10% | Permitted by FHA guidelines | Approval pathways are narrower and investor overlays may apply |
| Below 500 | Not eligible | Does not meet FHA’s minimum score threshold | Credit improvement is generally needed before FHA financing |
| 620 and above | 3.5% | Meets FHA’s minimum score tier | May offer more available approval pathways, depending on the file |
A $300,000 FHA loan with 580 credit score example
Assume you are buying a $300,000 home and your middle mortgage score is 580. The required 3.5% down payment is $10,500. Subtract that from the purchase price, and the base FHA loan amount is $289,500.
FHA also charges an upfront mortgage insurance premium of 1.75% of the base loan amount. On $289,500, that is $5,066.25:
$289,500 × 1.75% = $5,066.25
If you finance that upfront premium, the total loan amount becomes $294,566.25:
$289,500 + $5,066.25 = $294,566.25
For this example, use an illustrative 6.25% fixed interest rate on a 30-year term. Principal and interest on $294,566.25 is approximately $1,814 per month. FHA’s annual mortgage insurance premium at 55 basis points for this high-LTV, 30-year scenario is approximately $133 monthly in the first year:
$289,500 × 0.55% ÷ 12 = $132.69
That produces an estimated principal, interest, and FHA mortgage insurance payment of $1,947 per month. Property taxes, homeowners insurance, HOA dues, and any flood insurance are separate and must be added to determine the complete monthly housing payment.
Your minimum cash contribution in this example is $10,500, but that is not necessarily your final cash to close. Closing costs and prepaid items vary by property, tax timing, insurance, seller concessions, and available down payment assistance. Some buyers use eligible gift funds or approved assistance to cover part or all of the required contribution.
Why the payment matters more than the score alone
A 580 score gets attention because it meets the 3.5% down threshold. Yet the payment is what underwriting measures against your verified income and monthly debt. Car payments, student loans, credit cards, child support, and the projected housing payment all affect debt-to-income calculations.
The strongest next move is not guessing at a maximum purchase price. It is reviewing the actual payment with taxes and insurance for the county where you plan to buy. In Virginia, that may mean evaluating a Richmond-area home in Henrico, Chesterfield, Hanover, or elsewhere statewide. FHA loan limits also vary by county, so a home price that works in one market may exceed the local FHA ceiling in another.
What can stop a 580-score FHA approval
A 580 score does not erase recent major credit events or documentation requirements. New late payments, undisclosed credit inquiries, high revolving balances, insufficient income, or an appraisal issue can change the outcome. The property must also meet FHA minimum property standards, which matters especially with older homes needing repairs.
This is where broker independence matters. Coast2Coast Mortgage LLC can review pathways across 500+ wholesale lender options instead of limiting a buyer to one retail bank’s FHA product. That does not mean every file qualifies. It means a credit-challenged buyer gets a more complete review before being told yes or no.
Start with a NoTouch Credit Pull
Do not let a first conversation create an unnecessary hard inquiry. The NoTouch Credit Pull process begins with a soft pull pre-approval designed to review your credit profile without a hard credit inquiry. A soft credit pull can help identify score range, liabilities, and possible approval issues before a full application is submitted.
A NoTouch Credit Pull is not a final loan approval and does not replace full underwriting. It is a practical starting point for buyers who want a soft credit check before committing to a formal mortgage application. A soft pull credit check can also reveal whether paying down a card, correcting an error, or waiting for an account update could strengthen the file.
Frequently Asked Questions
Can I get an FHA loan with a 580 credit score?
Yes. A 580 score meets FHA’s minimum threshold for a 3.5% down payment. Approval is not guaranteed because the complete file must support the payment. Income, debts, recent late payments, cash to close, employment, and the home’s appraisal all remain part of the decision.
How much down payment is required with a 580 score?
The FHA minimum is 3.5% down with a score of 580 or higher. On a $300,000 purchase, that equals $10,500. Eligible gift funds or approved down payment assistance may help with required funds, but closing costs and prepaids must also be evaluated separately.
Is FHA mortgage insurance required with a 580 credit score?
Yes. FHA mortgage insurance is generally required regardless of whether your score is 580 or substantially higher. It includes an upfront premium, commonly financed into the loan, plus an annual premium paid monthly. The amount depends on loan term, loan-to-value ratio, and current FHA rules.
Does a 580 FHA score mean I will receive a high interest rate?
Not automatically, but credit score can affect pricing and available options. Your final rate also depends on market conditions, loan size, occupancy, debt profile, and the specific FHA program. Comparing wholesale options through an independent broker can identify the strongest available path for your profile.
Can I use gift funds for FHA down payment?
Yes, FHA permits eligible gift funds from approved sources when properly documented. The donor, transfer trail, and source of funds must meet program requirements. Gift funds can help cover the down payment, but your file still needs enough verified income and acceptable overall underwriting strength.
Can down payment assistance work with FHA financing?
Often, yes. Approved down payment assistance can be paired with FHA financing when program rules, income limits, property location, and repayment terms fit your situation. Assistance is not automatic and may carry requirements. Review its impact on payment, cash to close, and future refinance options first.
Will a soft credit pull hurt my credit score?
A soft credit pull typically does not affect your credit score the way a hard mortgage inquiry can. The NoTouch Credit Pull process gives buyers an early view of their profile without a hard inquiry. A full application may later require a hard pull.
Can I qualify if I had late payments recently?
It depends on the type, timing, and pattern of late payments. A recent isolated issue with a documented explanation may be viewed differently than multiple continuing delinquencies. Avoid new late payments before applying, and have a broker review the complete credit timeline rather than relying on score alone.
Legal Disclaimer
This article is educational, not a commitment to lend or an approval decision. Loan terms, rates, mortgage insurance, credit requirements, county loan limits, and program availability can change. Qualification depends on verified credit, income, assets, debts, property eligibility, appraisal, and underwriting requirements. Coast2Coast Mortgage LLC is a mortgage broker, not a retail bank.
A 580 score can be a starting point, not a verdict. Get the payment math and credit review first, then make a home-search decision based on a file that has been examined carefully.
Duane Buziak, Mortgage Maestro | Coast2Coast Mortgage LLC | NMLS #1110647 | (804) 212-8663 | duane@coast2coastml.com | 4860 Cox Rd, Glen Allen VA 23060 | Licensed: VA, FL, TN, GA, DC | VA Broker of the Year 2024-2025 | Scotsman Guide Top Originator 2025 & 2026 | UWM PRO ELITE 2025 | Top 1% Nationwide | 1,400+ five-star reviews.
