Can You Buy a Home with a 580 Credit Score?

Honestly, pushing back on PMI is smart, and you’re right—there’s usually not a ton of flexibility, but sometimes you can squeeze a little out of the process. I’ve found that “

you can sometimes get them to recalculate if you have extra assets or a bigger down payment

One thing I’d add: if you’re sitting at a 580 credit score, focus hard on the stuff you can control before shopping for a loan. Pay down revolving debt if you can, and double-check your credit report for errors—that’s saved me more than once. FHA loans will let you in with 580, but you’ll be paying for it in PMI and interest, so every point you can nudge your score up helps your wallet.

I wouldn’t call negotiating PMI a lost cause, but yeah, don’t bank on huge miracles. Sometimes just asking for options gets you a better deal than you’d expect.

When I refinanced last year, I actually managed to shave a little off my PMI by showing the lender some extra savings and a small inheritance I’d just received. It wasn’t a massive difference, but every bit helps when you’re staring at those monthly statements. They definitely perked up once they saw I had more in reserves than the minimum.

I agree about the credit score—when I bought my first place, my score was hovering just above 600, and the rates/offers were pretty rough. Even bumping it up by 20-30 points made a noticeable difference in what lenders were willing to do for me. It’s tedious, but going through your credit report line by line is worth it. I found an old utility bill that was misreported and getting that fixed bumped my score up almost instantly.

Negotiating PMI isn’t always a lost cause, but yeah, you’re not likely to see huge miracles unless you’ve got something substantial to offer. Still, it’s surprising what lenders will consider if you just ask or show them you’re less of a risk than your score suggests.

Definitely agree that lenders can be more flexible than people assume, especially if you show them you’re not just scraping by. I had a similar experience—when I was shopping around, I made a point to bring in documentation of my emergency fund and a side gig I’d been running for a couple years. It didn’t magically erase PMI, but it did help me get a slightly better rate and convinced the lender I wasn’t a risky bet.

The credit score thing is so frustrating, though. Even a small bump can mean hundreds of dollars saved over the life of a loan, but getting there feels like pulling teeth. I spent weeks disputing an old medical bill that was showing as unpaid when it had actually been settled ages ago. Once that dropped off, my score jumped quite a bit, and suddenly I was getting way more reasonable offers.

I do think people sometimes overlook just how much power they have to negotiate—maybe you can’t get rid of PMI entirely, but you can often nudge things in your favor if you’re organized and persistent. It’s not always easy, but it’s worth the effort.

Can’t tell you how many times I’ve seen folks walk into my office convinced they’re doomed because their credit score isn’t perfect. The reality is, lenders aren’t robots—they’re people (well, most of them). If you show up with your ducks in a row, even if those ducks are a little scruffy, it makes a difference. Emergency fund? Side hustle? That’s gold. Lenders love seeing you’ve got backup plans and aren’t just living on ramen and hope.

The credit score grind, though... yeah, that’s a whole circus. One tiny old bill can tank your rate, and fixing it feels like trying to get gum out of your hair. But you nailed it—once you clear up those weird blips, the offers can change overnight. It’s wild how much power a three-digit number has over our lives.

I do think a lot of buyers underestimate how much room there is to negotiate. Sure, PMI is the cockroach of homebuying—hard to kill—but you can definitely make it less of a nuisance. I’ve seen clients get better rates or closing cost credits just by being organized and asking the right questions. Sometimes it’s as simple as saying, “Hey, what can we do about this?” and suddenly options appear.

Not gonna sugarcoat it: buying with a 580 score isn’t always a walk in the park. But I’ve watched plenty of people pull it off with some hustle and creativity. You don’t need to be Warren Buffett—just persistent and willing to dig through some paperwork. And maybe keep a sense of humor handy for when the underwriter asks for your third-grade report card or whatever random thing they want next.

Long story short: you’re spot on about having more power than you think. The system’s not always fair, but there’s usually wiggle room if you know where to look (and aren’t afraid to push back a little).

I’ve actually been through the “scruffy ducks” scenario myself, trying to get financing on a rental property with a less-than-stellar score. You’re right about lenders being people—one time, just explaining a weird old collection (and showing I’d built up some reserves) made all the difference.

“Sometimes it’s as simple as saying, ‘Hey, what can we do about this?’ and suddenly options appear.”

Couldn’t agree more. I’ve seen folks get creative—like using gift funds or negotiating seller credits—to offset what their score couldn’t fix. It’s wild how much flexibility there can be if you’re willing to ask and show you’re serious. Still, I do wish the system wasn’t so quick to punish one old bill from five years ago... but hey, that’s the game.