What credit score do I need to buy a house?

Conventional loans typically require a minimum credit score of 620. FHA loans allow scores as low as 500 (with 10% down) or 580 (with 3.5% down). VA loans have no official minimum but most lenders prefer 620+. Higher scores unlock better rates.

How much do I need for a down payment?

Down payment requirements vary by loan type: FHA loans require 3.5%, conventional loans can go as low as 3%, VA and USDA loans offer 0% down for eligible borrowers. A 20% down payment eliminates private mortgage insurance (PMI).

What is the difference between a fixed and adjustable-rate mortgage?

A fixed-rate mortgage keeps the same interest rate for the life of the loan, providing predictable payments. An adjustable-rate mortgage (ARM) starts with a lower rate that adjusts periodically based on market conditions — ideal if you plan to sell or refinance within 5–7 years.

How much house can I afford?

A common guideline is to keep your total housing costs (mortgage, taxes, insurance) below 28% of your gross monthly income. Your total debt payments should stay below 36–43% of gross income (debt-to-income ratio). Use a mortgage calculator to estimate your budget.

What is PMI and how do I avoid it?

Private mortgage insurance (PMI) is required on conventional loans when you put down less than 20%. It typically costs 0.5%–1.5% of the loan amount annually. You can avoid PMI by making a 20% down payment, using a piggyback loan, or choosing a lender-paid PMI option.

Best Mortgages for 580 Credit Score (March 2026)

580

Poor-Fair Credit Range

Mortgage Options at This Score

What to Expect

At this score range, you'll qualify for some products but with higher rates and stricter terms. Subprime lenders are your primary option.

WiseIQ Expert Tip

A 0.5% difference in mortgage rate on a $350,000 loan saves over $35,000 in interest over 30 years. Always get at least 3 quotes before choosing a lender.

Rate Impact

Expect rates 5–12% above prime borrowers.

💡 Top Tip for 580 Credit

Dispute any errors on your credit report — even one removed negative item can push you into the fair range.

Timeline: 6–18 months of positive activity can improve your score significantly.

580 Fair Credit

Last Updated: March 2026 WiseIQ Editorial Team 8 min read

Rate Range

7.50% – 9.50%

Approval Odds

Min. Down Payment

3.5%

⚠️ Advertiser Disclosure: WiseIQ is reader-supported. We may earn a commission when you click links to our partners. This does not affect our editorial independence or the rates you receive.

Browse by Credit Score 600 →

580 is the minimum score for an FHA loan with 3.5% down. Conventional loans are not available at this score. Rates will be high but homeownership is possible.

Our Top Picks for 580 Credit Score

Best FHA Lender

Rocket Mortgage

APR Range7.50% – 9.50%

Min. Credit Score580 (FHA)

Why we recommend it: Rocket Mortgage is the largest FHA lender in the US and has a streamlined online process for 580 borrowers.

Check Your Rate →

Best Online Process

Better.com

APR Range7.75% – 9.25%

Min. Credit Score580 (FHA)

Why we recommend it: Better.com's fully digital process makes FHA applications fast and transparent for 580 borrowers.

Check Your Rate →

Compare Multiple Lenders

LendingTree

APR Range7.50% – 9.50%

Min. Credit Score580

Why we recommend it: LendingTree lets you compare FHA loan offers from multiple lenders simultaneously to find the best rate.

Check Your Rate →

Frequently Asked Questions

What is the minimum credit score for a mortgage?

The FHA program allows scores as low as 500 (with 10% down) or 580 (with 3.5% down). Conventional loans typically require 620+. VA loans have no minimum but lenders usually require 580+.

Can I get a conventional mortgage with a 580 credit score?

No — conventional loans require a minimum 620 credit score. At 580, your only option is an FHA loan, which requires mortgage insurance (MIP) for the life of the loan.

What is the mortgage rate for a 580 credit score?

FHA mortgage rates for 580 borrowers typically run 1–2% higher than the best available rates. Expect 7.5–9.5% in the current rate environment.

Sources & Methodology

WiseIQ's editorial team researches and fact-checks all content using primary sources. Our recommendations are based on independent analysis and are not influenced by advertiser relationships.

Consumer Financial Protection Bureau (CFPB) — regulatory data and consumer guidance
Federal Reserve — Consumer Credit Report (G.19) — interest rate benchmarks
AnnualCreditReport.com — official free credit report access
myFICO Credit Education — credit score methodology
Lender and issuer websites — rates, terms, and eligibility verified directly from source

Last reviewed: April 2026 | How we rank products

Best Mortgages for a 580 Credit Score

Rocket Mortgage

Better.com

LendingTree

Sources & Methodology

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