Can You Buy a Home with a 580 Credit Score?

I get where you're coming from, but I’d push back a bit on the FHA inspection part—sometimes it’s not as strict as folks expect. The appraiser checks for basic safety and habitability, but a lot can slip through. Water heater dying right after closing? Unfortunately, that’s more common than people think. Also, with a 580 score, lenders might want a bigger reserve for stuff like that. Not saying don’t budget for repairs, just... don’t assume the inspection covers everything.

Yeah, totally agree with you on the inspection thing. I’ve seen plenty of places pass FHA where the roof was basically on its last leg. Like you said,

“don’t assume the inspection covers everything.”

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

“don’t assume the inspection covers everything.”

That’s the part that always gets glossed over, and it’s honestly where I see the most heartbreak. People think, “Hey, it passed FHA, I’m good,” but those minimum standards are just that—minimum. I’ve walked into homes where the inspector signed off, but you could see daylight through the attic. Not kidding.

You’re right about having a cushion. I know it’s tough when you’re scraping together every penny for closing, but even a small emergency fund can make a huge difference. Especially if your credit score is on the lower end—lenders might approve you, but they’re not going to swoop in and fix your water heater if it dies two weeks after you move in.

Here’s how I usually break it down for folks in this situation:

1. Don’t skip your own walk-throughs. Even if you’re not handy, look for obvious stuff—stains on ceilings, weird smells, doors that don’t close right. Sometimes you catch things inspectors miss.
2. Ask for repair credits or negotiate after inspection. Sellers might not want to fix everything, but sometimes you can get a little cash back at closing to help with immediate repairs.
3. Budget for the “unknowns.” Even $1,000 set aside can be a lifesaver if something goes sideways right after closing.
4. Don’t get discouraged by the credit score thing. FHA is designed for buyers with less-than-perfect credit. It’s not a free pass, but it’s doable if you’re realistic about what you’re getting into.

I’ve seen buyers with 580 scores get into homes and do just fine—sometimes better than folks with higher scores who overextend themselves. The key is being honest about what you can handle and not letting excitement cloud your judgment.

One last thing: roofs and HVAC systems are big-ticket items that FHA doesn’t always flag unless they’re actively leaking or broken. If those are old, try to get an idea of their age and factor that into your offer or your budget.

It’s not impossible, just takes a little more hustle and some backup plans.

Nailed it with the emergency fund advice—seriously, if you think your credit score is stressful, wait until your first “surprise” plumbing bill. One thing I’d add: don’t forget about homeowners insurance costs and property taxes sneaking up after closing. Seen folks get caught off guard there... not fun. And yeah, even with a 580, you can totally make it work if you’re realistic (and maybe a little stubborn).

I totally get what you mean about those hidden costs—property taxes especially can jump unexpectedly, and it’s not always clear how much they’ll go up year to year. I found out the hard way when my escrow account came up short after the first year. Did anyone else have lenders require extra reserves because of a lower credit score? I had to show more in savings than I expected, which threw off my budget planning a bit. Curious if that’s common or just my lender being overly cautious...