Guide · Homebuying
FHA credit score requirements (2026): 580, 500 and what each means for your down payment
HUD sets two credit score tiers for FHA loans. Your score decides how little you can put down, not what you pay for mortgage insurance.
By the CalcLedger editorial team · Updated October 2026 · 7 min read · Examples use illustrative rates · How we calculate
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Key takeaways
- With a credit score of 580 or higher, you qualify for FHA's maximum financing: a down payment as low as 3.5%.
- With a score of 500 to 579, FHA limits the loan to 90% of the value, so you need at least 10% down. Below 500, you are not eligible.
- On a $300,000 home, that is $10,500 down at 580+ versus $30,000 at 500–579.
- Most FHA borrowers score well above the minimum: the average home-purchase score was 685 in July and August 2026, per HUD.
- From January 1, 2027, FHA will also accept VantageScore 4.0 and FICO 10T, with the same 500 and 580 thresholds.
580minimum score for 3.5% down
500minimum score with 10% down
685average FHA purchase score, Jul–Aug 2026
13.5%of new FHA loans went to scores below 620
Short answer: the minimum credit score for an FHA loan is 580 for a 3.5% down payment and 500 if you put at least 10% down. Scores below 500 are not eligible, according to HUD Mortgagee Letter 2010-29, which is still the rule HUD applies today.
Try it See your FHA payment at 3.5% or 10% down with both premiums in the FHA loan calculator, or compare FHA with conventional and VA in the FHA vs. conventional vs. VA calculator.
FHA minimum credit score: the HUD rule
HUD's rule has three tiers, based on your "minimum decision credit score." Borrowers at or above 580 "are eligible for maximum financing," which HUD describes as a down payment "as low as 3.5% of the purchase price":
| Credit score | Max loan-to-value | Minimum down |
|---|---|---|
| 580 or higher | 96.5% | 3.5% |
| 500 to 579 | 90% | 10% |
| Below 500 | Not eligible | — |
These are FHA's floors for insuring the loan. The interest rate you are offered still depends on your lender and your full credit profile, so compare quotes from more than one FHA lender.
Watch out HUD's minimums are not a promise of approval. A lender can set its own, stricter credit standards on top of FHA's rules, so a lender that turns you down at 590 does not mean every FHA lender will. Ask each lender for its minimum score before you apply.
Which credit score counts for FHA
Lenders pull your scores from the three credit bureaus (Equifax, TransUnion and Experian). According to HUD's FHA handbook glossary, the score FHA uses is:
- the middle (median) score when three scores are reported,
- the lower score when two different scores are reported,
- the only score when just one is reported.
So with scores of 572, 584 and 601, your FHA score is 584, which qualifies for 3.5% down. With only two scores, 572 and 601, it would be 572, and you would need 10% down. That is why checking all three of your credit reports before you apply matters.
Down payment by credit score: 580+ vs. 500–579
Here is the minimum down payment for each tier at common home prices:
| Home price | 580+ (3.5%) | 500–579 (10%) |
|---|---|---|
| $250,000 | $8,750 | $25,000 |
| $300,000 | $10,500 | $30,000 |
| $400,000 | $14,000 | $40,000 |
| $450,000 | $15,750 | $45,000 |
Minimum FHA down payment by credit score
Cash for the down payment, before closing costs
Score 580 or higherScore 500 to 579
The bigger down payment does have an upside. With 10% down the base loan is smaller, and under HUD Mortgagee Letter 2023-05 the annual mortgage insurance rate drops from 0.55% to 0.50% and ends after 11 years instead of lasting the life of the loan. Here is the first-year monthly payment (principal, interest and MIP) for each tier:
| Home price | 3.5% down | 10% down |
|---|---|---|
| $250,000 | $1,621 | $1,503 |
| $300,000 | $1,946 | $1,803 |
| $400,000 | $2,594 | $2,404 |
| $450,000 | $2,918 | $2,705 |
30-year fixed, illustrative 6.25% rate for both tiers, 1.75% upfront premium added to the loan, first-year annual MIP; property taxes, insurance and closing costs not included. Your own rate may differ by credit score.
Tip Your score does not change FHA mortgage insurance. HUD sets the upfront premium (1.75%) and the annual MIP by loan amount, down payment and loan term only, so a 600 and a 760 score pay the same MIP on the same loan. See FHA mortgage insurance (MIP) explained.
What credit scores FHA borrowers actually have
The minimum is 500, but few FHA loans are made near it. The FHA Credit Risk Report for August 2026 shows how new FHA loans were spread across credit scores in July and August 2026:
| Credit score | Share of new FHA loans |
|---|---|
| Below 620 | 13.50% |
| 620–639 | 11.32% |
| 640–679 | 28.22% |
| 680–719 | 21.93% |
| 720–850 | 24.50% |
The average score on FHA home-purchase loans was 685, the same as a year earlier. Those buyers had an average debt-to-income ratio of 44.32% and borrowed 95.03% of the home's value on average, which shows how many use the low down payment. Only 13.50% of new FHA loans went to borrowers below 620, and HUD's report does not break out how many were below 580.
New in 2027: VantageScore 4.0 and FICO 10T
HUD announced on April 22, 2026 that FHA will allow two newer credit score models alongside the classic FICO score: VantageScore 4.0 and FICO Score 10T. According to the FHA Alternative Credit Scores Preparedness Guide, FHA will accept them for case numbers assigned on or after January 1, 2027, and "the established thresholds for MDCS of 500, 580, and 620 also apply to the new credit score models."
In plain terms, the 580 and 500 tiers do not change. What may change is the number itself: each model weighs your credit data in its own way, so the same person can score differently on each one. If your score is close to 580 or 500, ask your lender which model it uses.
How the credit score fits with FHA loan limits
Your score sets the down payment; your county sets the largest base loan FHA will insure. In most counties the 2026 limit is $541,287 for a one-unit home. With 3.5% down that supports a price of up to about $560,919; with the 10% minimum for scores of 500–579, about $601,430. Look up your county in FHA loan limits 2026.
Example Maria's middle score is 575 and she wants a $300,000 home. She needs $30,000 down instead of $10,500. If she raises her middle score to 580 before applying, the minimum drops by $19,500, though putting 10% down would cut her first-year payment from about $1,946 to $1,803 and end MIP after 11 years.
Check your numbers
Enter your price, down payment and rate in the FHA loan & MIP calculator to see your payment with both premiums, or compare FHA with conventional and VA in the FHA vs. conventional vs. VA calculator. To see what your income supports, try the home affordability calculator.
Frequently asked questions
What is the minimum credit score for an FHA loan in 2026?
HUD's minimum is 580 for a 3.5% down payment and 500 with at least 10% down. Scores below 500 are not eligible for FHA financing (HUD Mortgagee Letter 2010-29). Individual lenders may require more.
Can I get an FHA loan with a 500 credit score?
Yes, if a lender will make the loan: with a score from 500 to 579, FHA allows up to 90% loan-to-value, so you need at least 10% down, for example $30,000 on a $300,000 home.
How much do I need to put down on an FHA loan with a 550 credit score?
At least 10% of the price, because 550 is in the 500–579 tier. That is $25,000 on a $250,000 home or $40,000 on a $400,000 home.
Does my credit score change FHA mortgage insurance?
No. FHA's 1.75% upfront premium and its annual MIP depend on the loan amount, down payment and term, not on your credit score.
What credit score do most FHA borrowers have?
In July and August 2026, the average credit score on FHA home-purchase loans was 685, according to HUD's Credit Risk Report. About 24.5% of new FHA loans went to borrowers with 720 or higher.
Will FHA accept VantageScore?
Yes, starting with case numbers assigned on or after January 1, 2027, FHA will accept VantageScore 4.0 and FICO 10T as well as the classic FICO score, with the same 500 and 580 thresholds.
Payment examples are illustrative and use one rate for both tiers. Your rate, approval and costs depend on your lender, your full credit profile, your income and debts, and the home.
Sources
- U.S. Department of Housing and Urban Development: Mortgagee Letter 2010-29: Minimum credit scores and loan-to-value ratios
- U.S. Department of Housing and Urban Development: Loans: FHA down payment as low as 3.5%
- U.S. Department of Housing and Urban Development: Handbook 4000.1 glossary: Minimum Decision Credit Score
- U.S. Department of Housing and Urban Development: FHA Alternative Credit Scores Preparedness Guide (VantageScore 4.0 and FICO 10T)
- U.S. Department of Housing and Urban Development: HUD No. 26-026: Homebuying advances into new era of credit score competition (April 22, 2026)
- U.S. Department of Housing and Urban Development: FHA Single Family Origination Trends, Credit Risk Report (August 2026)
- U.S. Department of Housing and Urban Development: Mortgagee Letter 2023-05: FHA annual mortgage insurance premium reduction
Rules, limits and program details are checked against these official sources. Example numbers are calculated by CalcLedger with the formulas on our how we calculate page. Read our editorial policy.
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