Last Updated in November 2026
Yes, but it's harder. A 500 credit score can qualify for an FHA loan if you put at least 10% down. Below 500, FHA is off the table, and every lender sets its own cutoff on top of that.
Quick Answer: A 500 score gets about 9.08% on a 30-year fixed right now. On a $300k house with an FHA loan and $30,000 down, that's about $2,659 a month, or $271 more than a 760+ score pays.
↓ Plug in your own numbers below ↓
Can I buy a house with a 500 credit score?
Here's what each major loan program requires:
Loan type | Minimum credit score |
|---|---|
No set minimum | |
500, or 580 for 3.5% down | |
VA | Set by your lender |
Set by your lender |
Fannie Mae dropped its 620 floor for loans approved through its automated system in November 2025. FHA's floor is 500, and you need 580 for the 3.5% down option (HUD). VA and USDA don't list a minimum score, so each lender sets its own.
With a 500, FHA is your main path, and you'll need at least 10% down. Each lender also sets its own cutoff, and some set it higher than HUD does, so ask your lender up front. If your loan gets reviewed by hand instead of by the automated system, HUD also caps the house payment at 31% of your gross pay and all your debts at 43%.
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What mortgage rate can I get with a 500 credit score?
About 9.08% on a 30-year fixed. Here's every score band on the same $300k house:
Credit score | Estimated rate | Monthly payment |
|---|---|---|
7.32% | $2,388 | |
7.40% | $2,403 | |
7.55% | $2,433 | |
7.57% | $2,436 | |
7.72% | $2,466 | |
7.75% | $2,472 | |
7.88% | $2,497 | |
8.08% | $2,537 | |
8.58% | $2,733 | |
8.58% | $2,733 | |
9.08% | $2,659 | |
500 to 549 | 9.08% | $2,659 |
Payments use 5% down for 620 and up. Below 620 they use FHA with 3.5% down (580 to 619) or 10% down (500 to 579), plus FHA mortgage insurance.
How we got these: we start with Freddie Mac's weekly average of 7.32% (October 22, 2026) for the top score tier, then add the gap between score bands from FICO's rate data as of November 4, 2026. FICO doesn't publish rates below 620, so we add another half point for 580 to 619 and a full point below 580. Treat those two as rough estimates.
Your real rate also depends on the loan type, your down payment and points. FHA mortgage insurance is set by HUD and doesn't go up with a lower score (more on that below).
How much house can I afford with a 500 credit score?
Your credit score sets the rate. Your income sets the price. Here's what 9.08% with 10% down buys at three incomes:
Yearly income | Comfortable (28%) | Stretch (31%) |
|---|---|---|
$131,600 | $145,700 | |
$197,500 | $218,600 | |
$263,300 | $291,500 |
Comfortable keeps the house payment at 28% of your gross pay. Stretch here is 31%, HUD's cap when a loan under 580 gets reviewed by hand. A 760+ score at the same $75k income buys about $22,400 more house.
Want the full monthly breakdown at those prices? See what the mortgage is on a $150k house, a $200k house and a $250k house.
Want your number with your actual income, debts and score? Run it in the calculator below.
How much do I need for a down payment with a 500 credit score?
Here's the cash down on a $300k house for each option that works with a 500:
Option | Down payment |
|---|---|
VA loan (eligible veterans and service members) | $0 |
USDA loan (eligible rural areas, income limits apply) | $0 |
FHA, 10% down with a 500 to 579 score | $30,000 |
FHA mortgage insurance with 10% down is 0.50% of the loan a year, and it comes off after 11 years. There's also an upfront premium of 1.75% of the loan ($4,725 here) that can be rolled into the loan (HUD Mortgagee Letter 2023-05). The payments on this page don't include that upfront premium.
This is NOT lending advice. Programs, limits and approvals change, and your lender sets the final numbers.
What a 500 score costs you compared to 760+
Same $300k house, same 30-year fixed:
Compare | 500 score | 760+ score |
|---|---|---|
Rate | 9.08% | 7.32% |
Monthly payment | $2,659 | $2,388 |
Interest over 30 years | $517,695 | $419,791 |
That's $271 more a month and $97,904 more in interest over the full 30 years. Part of that is FHA's mortgage insurance and a different down payment, but it all traces back to the score.
If you buy now and your score climbs later, you can refinance into a better rate. Refinancing has its own closing costs, so run the numbers first.
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How to raise a 500 credit score to 580
Getting to 580 cuts the FHA down payment from 10% to 3.5%. On this house, that's $10,500 down instead of $30,000. Here's what moves a score the fastest:
Pay your card balances down. Keep each card around 10% of its limit, and pay before the statement closes so the lower balance is what gets reported.
Pull all three reports and fix errors. They're free every week at AnnualCreditReport.com. If something's wrong, dispute it with the credit bureau (CFPB).
Never miss a payment. Payment history is the biggest piece of your score, and a late payment can stay on your report for up to 7 years (CFPB).
Don't open or close cards right before you apply. New accounts add hard inquiries, and closing an old card can push your utilization up.
Ask about a rapid rescore. Once you pay a balance down, your lender can sometimes get the new score pulled in days instead of waiting for the next reporting cycle.
Want the whole playbook? Take our free 800 Credit in 8 Days course.
Next steps
Alright, now you know what a 500 score gets you. Here's what I'd do next:
Pull your credit reports. Know exactly what's on them before a lender pulls them, and fix anything wrong.
Get pre-approved and understand your program options. A pre-approval means a lender actually checked your credit and income. Sort out financing before you fall in love with a house.
Set your real budget. Start from the payment you're fine with, not the max you're approved for. Leave room for utilities, groceries and about 1% of the home's value a year for upkeep ($3,000 a year on a $300,000 house).
Vet your agent. Ask if it's a good time to buy. The honest answer is "it depends on you."
Buying in eastern Idaho or the Boise area? That's what we do at Bellhaven. Book a 15-minute call and we'll run your numbers with you.
FAQs
What is the lowest credit score to buy a home?
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