Key takeawayFannie Mae and Freddie Mac price loans down to 620, below that, conventional financing is effectively unavailable from agency lenders.
What concretely changes at 580
- Fannie Mae and Freddie Mac price loans down to 620, below that, conventional financing is effectively unavailable from agency lenders.
- The block is structural, not an overlay: loan-level price adjustments below 620 are prohibitive, and most lenders simply do not offer the product there.
- PMI companies also draw lines around 620, even a willing lender would face uninsurable MI.
- The productive path at 580 is FHA (3.5% down at 580) while building toward 620.
Requirements at this band
| Agency minimum | 620 for Fannie/Freddie |
|---|---|
| At 580 | Conventional effectively unavailable |
| PMI availability | MI companies generally require 620+ |
| Best alternative | FHA at 3.5% down |
Figures are typical market ranges as of October 2026. Actual terms depend on the lender, your credit, the property and the program, and are confirmed on your Loan Estimate or term sheet.
Smart moves at 580
- Do not burn time and credit inquiries chasing conventional at 580, go FHA now.
- Build toward 620 with utilization management; then reassess conventional vs. FHA.
- A rapid rescore through your loan officer can document paydowns in weeks, not months.
FAQ
Is there ANY conventional loan at 580?
Extremely rare portfolio exceptions exist, but they are not agency loans and pricing is punitive. FHA is the honest answer at 580.
How long to get from 580 to 620?
With focused utilization paydowns and no new derogatories, many borrowers move 40+ points in 60–120 days.
Should I wait to buy?
If the home and payment work on FHA today, buying now and refinancing into conventional later often beats waiting, you are building equity while your score recovers.