FHA loans allow credit scores as low as 500, but the real story is more nuanced. Here's exactly what credit score you need for 3.5% down vs. 10% down — and how to improve your score fast.
FHA Loan Credit Score Requirements in 2026
FHA loans are the most popular low-down-payment mortgage for buyers with less-than-perfect credit. But the credit score requirements are more nuanced than the headline number suggests.
The Two Credit Score Tiers
| Credit Score | Down Payment Required | Notes |
|---|---|---|
| 580 or higher | 3.5% | Standard FHA program |
| 500–579 | 10% | Higher down payment required |
| Below 500 | Not eligible | FHA will not insure |
Lender Overlays: The Hidden Requirement
While FHA allows scores as low as 500, most lenders impose "overlays" — their own stricter requirements. Many lenders require a minimum 620 or even 640 score. As an independent broker, Stephen works with wholesale lenders who maintain lower overlay requirements, giving his clients access to FHA financing that many retail banks won't offer.
How to Improve Your Credit Score Before Applying
- Pay down credit card balances below 30% of the limit (ideally below 10%)
- Don't close old accounts — length of credit history matters
- Dispute any errors on your credit report
- Avoid opening new credit accounts in the 6 months before applying
Not sure where your credit stands? Contact Stephen for a free credit review and a personalized plan to get you mortgage-ready.
Frequently Asked Questions
Can I get an FHA loan with a 580 credit score in Oregon?
Does FHA check all three credit bureaus?
Stephen Harris, CMC · CRMS · CFMP · CVLS
Licensed Originator · X2 Mortgage · NMLS #203065
Stephen Harris is a Certified Mortgage Consultant with X2 Mortgage, serving Medford, Ashland, Grants Pass, and all of Southern Oregon. With 20+ years of combined real estate and mortgage experience, he holds 5 NAMB designations and 8 real estate credentials — giving his clients an unmatched depth of expertise. Licensed in Oregon, Arizona, and California.