Key takeawayFHA at 3.5% down is the workhorse, the only mainstream path combining low score with low down payment.
What concretely changes at 580
- FHA at 3.5% down is the workhorse, the only mainstream path combining low score with low down payment.
- Down payment assistance is mostly out of reach: major programs require 620–640. Budget the 3.5% plus closing costs yourself.
- Seller concessions (up to 6% on FHA) and lender credits become critical tools for cash-to-close.
- The plan: buy FHA now if the market demands it, build score, refinance or DPA later.
Requirements at this band
| Primary path | FHA 3.5% down at 580 |
|---|---|
| DPA | Mostly 620–640 minimums, largely unavailable |
| Seller help | Up to 6% concessions on FHA |
| Reserves | Helpful but not always required |
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
- Negotiate seller concessions aggressively, at 580, every dollar of help matters.
- Ask about FHA 203k if the affordable homes need work.
- Set calendar reminders to revisit score in 6 months; 620 changes everything.
FAQ
Can I buy with no money down at 580?
Realistically no, 0%-down programs (VA, USDA) have their own gates, and DPA minimums sit higher. Plan on 3.5% plus costs.
Should I wait until 620?
If prices are flat and you can save, waiting can work. If prices are rising, FHA now usually wins, run the numbers.
What about first-time buyer classes?
Take one anyway, some are required for future DPA, and the education helps regardless.