From the RatesQ team · Sample question

What credit score do I actually need for an FHA loan?

This educational scenario and its sample explanations are not posts from real users.

I've seen 500, 580, 620 mentioned in different places. What's the real answer for 2025? And does a lower score mean I can't get 3.5% down?

Quick Summary

  1. FHA credit eligibility and lender overlays are not the same.
  2. Credit, down payment and other underwriting factors affect the review.
  3. Check the current requirements of the program and lender rather than assuming approval.

Sample explanations

From the RatesQ team

The FHA guidelines say 580 for 3.5% down and 500-579 for 10% down. But 'FHA guidelines' and 'what lenders will actually do' are different things. Most lenders who originate FHA loans impose their own overlays — commonly 620 or 640 minimum. If your score is 580-619, you'll find fewer lenders willing to work with you. If you're at 500-579 and need 10% down FHA, the pool is very small.

From the RatesQ team

One good thing about FHA vs conventional: FHA does not have loan-level price adjustments (LLPAs) based on credit score like conventional does. So at 580 credit, your FHA interest rate won't be dramatically higher than someone at 740 — the MIP is the same, the rate is similar. That's a meaningful advantage vs. conventional where a lower score can add significant pricing. If you're below 620, FHA is often your best path to competitive mortgage pricing.