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FHA Credit Score Requirements 2026: 580 vs 500 (and What Changes in 2027)

FHA's minimum credit score is 580 for 3.5% down and 500 with 10% down. Here's how lenders read your score, debt limits, and HUD's 2027 scoring change.

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Letter tiles spelling credit, FHA credit score requirements

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Updated November 7, 2026. Includes HUD’s new credit score rules that start January 1, 2027.

Short answer: FHA’s official minimum credit score is 580 for a 3.5% down payment and 500 if you put at least 10% down. Below 500, you can’t get an FHA loan. Many lenders set their own higher minimums, so shopping around matters.

Quick answers

  • 580 or higher: eligible for maximum financing (3.5% down on a purchase).
  • 500–579: eligible, but the loan can’t exceed 90% of the home’s value (10% down).
  • Below 500: not eligible for an FHA loan.
  • No credit score: still possible, with manual underwriting and stricter debt limits.
  • New in 2027: FHA will also accept VantageScore 4.0 and FICO Score 10T, not just Classic FICO.

FHA loans are the go-to option for buyers with lower credit scores or small savings. But “FHA accepts 500 credit” is only half the story. Your score decides your down payment, how much debt you can carry, and even which lenders will talk to you. Here’s how it really works.

FHA credit score requirements at a glance

Your credit score (MDCS) Maximum loan-to-value Minimum down payment (purchase)
580 or higher 96.5% 3.5%
500–579 90% 10%
Below 500 Not eligible N/A
No credit score Maximum financing, manual underwriting 3.5%

HUD calls the score that counts your Minimum Decision Credit Score (MDCS). It’s not simply your best score. Here’s how lenders find it today: if you have three scores, they use the middle one. If you have two, they use the lower one. With more than one borrower, the loan uses the lowest borrower’s score.

What changes on January 1, 2027

HUD’s Mortgagee Letter 2026-11 (issued October 8, 2026) lets lenders use two newer scoring models, VantageScore 4.0 and FICO Score 10T, alongside Classic FICO for case numbers assigned on or after January 1, 2027.

  • The 500 and 580 thresholds stay the same for every model.
  • If a lender pulls more than one model, each borrower’s score is the lowest of their model scores, and the loan uses the lowest borrower’s score.
  • All borrowers on a loan must be scored with the same model or models.
Myth buster“The new scoring models will make it easier to qualify.” Maybe for some people. VantageScore and FICO 10T look at your credit differently, so some borrowers may score higher. But when a lender uses several models, HUD’s rule takes the lowest one, so more models don’t automatically help.

How your score changes your FHA loan

Example

A $300,000 home. We use 7.18% for illustration (FHA rates are often a bit different from conventional rates). Payments include the financed 1.75% upfront mortgage insurance premium, but not taxes or homeowners insurance:

  • Score 580+, 3.5% down ($10,500): loan of $294,566, about $1,995/month in principal and interest, plus about $133/month in annual MIP (0.55%) for the life of the loan
  • Score 560, 10% down ($30,000): loan of $274,725, about $1,861/month, plus about $112/month in annual MIP (0.50%), which ends after 11 years

The lower score costs you $19,500 more cash up front. Raising your score to 580 before you apply can be worth a lot.

Run your own numbers in the FHA loan calculator.

How much debt you can have (manual underwriting)

Most FHA loans are approved through HUD’s automated system. If yours is “referred” for a manual review, or if you have no credit score, these debt-to-income limits apply:

Credit score Max housing / total debt ratio What you need
500–579 or no score 31% / 43% Can’t go higher
580+ 31% / 43% No extras needed
580+ 37% / 47% One compensating factor, like cash reserves or residual income
580+ 40% / 40% No discretionary debt (like credit cards)
580+ 40% / 50% Two compensating factors

Check where you stand with the DTI calculator and our debt-to-income guide.

Why a lender might ask for more than 580

HUD sets the floor, but lenders can add their own stricter rules, called “overlays.” Some lenders won’t take FHA borrowers below 600 or 620, even though HUD allows lower. If one lender says no, another may say yes. Ask every lender up front: “What’s your minimum credit score for an FHA loan?”

Fun factFHA stands for the Federal Housing Administration, created in 1934. It doesn’t lend money. It insures loans so lenders are willing to say yes to buyers with smaller down payments.

How to raise your score before you apply

  • Pay every bill on time. Payment history is the biggest part of most scores.
  • Lower your card balances. Using less of your available credit usually helps quickly.
  • Check your reports for mistakes. You can get free reports at AnnualCreditReport.com and dispute errors.
  • Don’t open new accounts right before applying.
  • Ask about a rapid rescore. If you pay down a card, some lenders can update your score in days.

More tips in our guide to the credit score you need for a mortgage.

Other FHA rules to know

  • Loan limits (2026): $541,287 in most areas, up to $1,249,125 in high-cost areas for a one-unit home.
  • Mortgage insurance: 1.75% upfront plus an annual premium, usually 0.55%.
  • Down payment gifts are allowed. See using gift funds for a down payment.

For the full checklist, read FHA loan requirements. Compare with conventional loan requirements, and learn how mortgage insurance works.

FAQ

What is the minimum credit score for an FHA loan in 2026?

500 with at least 10% down, or 580 for the 3.5% down payment option. Lenders may require more.

Can I get an FHA loan with a 550 credit score?

Yes, under HUD rules, if you put at least 10% down and meet the other requirements. Your file will usually need manual underwriting, and not every lender will accept it.

Can I get an FHA loan with no credit score?

Yes. HUD allows borrowers with no score, using non-traditional credit like rent and utility history, with manual underwriting and a 31%/43% debt limit.

Will FHA accept VantageScore?

Starting with case numbers assigned on or after January 1, 2027, FHA will accept VantageScore 4.0 and FICO Score 10T in addition to Classic FICO.

Sources: HUD Single Family Housing Policy Handbook 4000.1; HUD Mortgagee Letter 2026-11 (October 8, 2026); HUD Alternative Credit Scores Prep Guide; HUD Mortgagee Letter 2023-05 (annual MIP); HUD Mortgagee Letter 2025-23 (2026 FHA loan limits). Payment examples use an illustrative rate and exclude taxes and insurance. This article is general education, not financial advice. Keys & Coffee is not a lender.

Shivam Kaushik (IMSHIVA)

Written by

Shivam Kaushik· IMSHIVA

Founder & Director, QuibbleTech Solutions Pvt Ltd · Editor, Keys & Coffee

Shivam Kaushik is the founder of QuibbleTech Solutions Pvt Ltd and the editor of Keys & Coffee. He is not a licensed loan officer or financial adviser. Every guide here is written in plain English and checked against official sources such as the CFPB, HUD, Fannie Mae, Freddie Mac and the Federal Reserve. For advice on your own loan, talk to a licensed lender.

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Keys & Coffee is an independent education site. We are not a lender or mortgage broker, we do not take loan applications or payments, and nothing here is financial advice. This site is not affiliated with Axia Home Loans, Axia Financial, LLC, or Planet Home Lending. Rates and rules change often — always confirm details with a licensed loan officer and check any lender on the NMLS Consumer Access site.

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