Can You Buy a Home with a 580 Credit Score?

Buying with a 580 credit score is definitely possible, but I’ll admit it felt pretty intimidating at first. I remember thinking, “There’s no way I’ll get approved,” but after talking to a few lenders, I realized it wasn’t as black-and-white as I thought.

Many people worry that a 580 credit score makes homeownership impossible, but that’s not true! FHA loans allow approval with just 3.5% down...

That part really rings true for me. I went the FHA route last year when my score was hovering right around 580 (thanks, medical bills and a couple of missed payments from years ago). The process took some patience—there were extra hoops to jump through, like providing more documentation and writing letters explaining some of the dings on my report. But the lender was actually pretty understanding about it.

One thing I wish I’d known sooner: even though you *can* get approved with a lower score, your interest rate will probably be higher. Mine was about half a percent more than what my friend got with a 700+ score. It stings a bit, but honestly, just being able to buy my own place outweighed that for me. Plus, like you mentioned, refinancing is always an option down the line if your credit improves or rates drop.

I also found that working with a broker made things way less stressful. They explained all the options and didn’t make me feel judged for my credit history—which was a relief after some of the horror stories I’d read online.

If anyone’s on the fence because of their score, I’d say don’t count yourself out. It’s not always easy, but it’s definitely doable. Just be ready for a little extra paperwork and maybe some awkward conversations about your finances... but in the end, getting those keys made it all worth it for me.

One thing I’d add—sometimes people overlook the upfront costs beyond the down payment, like closing costs and prepaid taxes. Those can sneak up on you, especially if you’re focused on just scraping together the minimum down. Did anyone here run into surprises with those extra fees, or did your lender walk you through it all? I’ve seen buyers get caught off guard, even after getting pre-approved.

Title: Can You Buy a Home with a 580 Credit Score?

I’ve seen this trip up a lot of first-time buyers, especially when they’re working with a tighter budget or lower credit score. Years ago, I had a client who was laser-focused on scraping together the minimum down payment for an FHA loan—she had a 585 credit score, so every dollar counted. She was pre-approved and thought she was set, but when the closing disclosure came in, she was floored by the extra $7k in closing costs and prepaid items. Her lender had mentioned “some fees,” but never broke down the numbers until the last minute.

It’s easy to underestimate how much those costs add up—title insurance, escrow fees, prepaid taxes, homeowners insurance... it’s a laundry list. I always recommend asking for a detailed loan estimate early on, even if you feel awkward pushing for specifics. Not every lender is proactive about walking you through it, unfortunately. In my experience, being a little pushy upfront saves a lot of stress later.

It’s easy to underestimate how much those costs add up—title insurance, escrow fees, prepaid taxes, homeowners insurance...

Title: Can You Buy a Home with a 580 Credit Score?

That’s a good point about the closing costs. I think a lot of people get tunnel vision on the down payment and forget about all the other stuff that pops up at the end. When I bought my first place (credit score was 590-ish at the time), I was so focused on scraping together the 3.5% for FHA that I didn’t even think about things like prepaid taxes or insurance. My lender did mention “some fees,” but it wasn’t until I saw the actual numbers that I realized how much more I needed.

One thing I wish I’d done differently: shopped around for lenders more aggressively. I just went with the first one who said yes, but later found out another company would’ve given me a slightly better rate and lower origination fee. It’s kind of overwhelming when you’re already worried about qualifying, but it really does pay to compare.

Also, just as a heads up for anyone in this situation—some sellers are willing to help with closing costs if you ask, especially if their house has been sitting for a while. My agent negotiated for the seller to cover about half of mine, which made a huge difference.

It’s definitely possible to buy with a 580 score, but it’s not always as straightforward as the ads make it sound. There’s a lot of fine print and extra hoops, but if you’re prepared for that, it’s doable. Just takes some patience and maybe a bit of luck with timing.