Credit

Can I get an FHA loan with bad credit?

Short answer

Often yes — FHA is generally more flexible on credit than conventional. The minimum FHA credit score is 500 with 10% down or 580 with 3.5% down, but most lenders set their own floor at 580 or higher. What matters as much as the score: recent payment history (last 12 months clean is meaningful), automated underwriting findings, residual cushion, and lender overlays.

Plain-English explanation

FHA is the access program. Credit scores in the 580–620 range are common on FHA files, and 500–579 may qualify with 10% down at the small set of lenders that fund that band. What 'bad credit' actually means matters more than the score: a 580 with a clean recent year is different from a 650 with three 30-day lates last quarter. Recent collections, unpaid charge-offs, fresh bankruptcies (Ch7 typically 2-year wait, sometimes earlier with extenuating circumstances), foreclosures (typically 3-year wait), and disputed accounts each have their own treatment. Automated underwriting and manual underwriting respond differently to the same file. Subject to FHA/HUD guidelines and lender overlays.

Practical example

A Florida buyer at 590 with clean recent payment history, stable W-2 income, and 6 months of reserves clears FHA with 3.5% down. A buyer at 650 with two recent 30-day lates and high credit-card utilization is denied at the same lender — score isn't the only signal.

What can change the answer?

Recent late payments, thin credit history, disputed accounts, lender overlays, and automated underwriting findings can change the answer.

Your next step

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Want the real answer for your file?

FHA guidelines are the rule. Your credit, income, payment, property, and county limit are what decide the actual answer.

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