You can buy a house with a 570 credit score, but realistically only through an FHA loan with at least 10% down. Conventional mortgages require a 620 minimum, and while VA loans have no federal credit floor, most VA lenders set their own cutoff around 620 as well. FHA accepts scores as low as 500, so a 570 qualifies, but a hard dividing line at 580 means you’ll put down roughly three times as much cash as a borrower just ten points higher.1U.S. Department of Housing and Urban Development. Does FHA Require a Minimum Credit Score and How Is It Determined?
The FHA Loan Is Your Realistic Option
The Federal Housing Administration insures mortgages for borrowers conventional lenders turn away. Its credit floor is 500, so a 570 clears the bar. What matters more at your score is the structural split inside the program:
- Scores from 500 to 579: minimum down payment of 10%.
- Scores of 580 and above: minimum down payment of 3.5%.1U.S. Department of Housing and Urban Development. Does FHA Require a Minimum Credit Score and How Is It Determined?
On a $300,000 home, 10% down means $30,000 in cash at closing. At 3.5%, the same house needs only $10,500 up front. That $19,500 gap is the single biggest financial consequence of sitting at 570 instead of 580.
VA and USDA Loans Probably Won’t Help
Veterans sometimes assume the VA program solves a low-score problem. On paper, the VA sets no minimum credit score, but most VA lenders apply their own minimum of roughly 620.2Veterans Benefits Administration. VA Home Loan Guaranty Buyer’s Guide You might find a VA lender willing to work with a 570, but expect to shop aggressively, and expect strong residual income to carry much of the weight.
USDA loans are tighter in practice. Automated approval through the USDA system requires a 640. Below that, the loan originator has to build a credit history manually from at least three independent sources.3USDA Rural Development. RD SFH Credit Requirements Manual approval at 570 isn’t impossible, but USDA is designed for rural areas and carries income caps, which narrows the fit before credit even enters the picture.
The Debt-to-Income Cap You Can’t Negotiate Around
Your debt-to-income ratio is the share of your gross monthly income that goes toward debt. FHA uses two figures: the front-end ratio (housing costs only) and the back-end ratio (housing plus car payments, student loans, credit card minimums, and other recurring debt). For borrowers below 580, FHA hard-caps these at 31% and 43%.4U.S. Department of Housing and Urban Development. Mortgagee Letter 2014-02 – Manual Underwriting
This is the unforgiving part. Borrowers at 580 and above can sometimes push past 43% by showing compensating factors like large cash reserves or substantial residual income. At 570, that escape valve isn’t available. If your total monthly debt including the projected mortgage payment would exceed 43% of your gross income, you need to pay down debt first or look at a cheaper house. There is no workaround at your score.4U.S. Department of Housing and Urban Development. Mortgagee Letter 2014-02 – Manual Underwriting
What the Loan Will Actually Cost You
Every FHA loan carries mortgage insurance, and the costs compound at a lower score. There are two premiums:
The upfront mortgage insurance premium is 1.75% of the base loan amount, typically rolled into your balance. On a $270,000 loan (90% of a $300,000 home), that adds roughly $4,725 to what you owe from day one.5HUD.gov. Appendix 1.0 – Mortgage Insurance Premiums
The annual mortgage insurance premium is divided into your monthly payments. Its rate depends on your loan amount, term, and loan-to-value ratio. There is one quiet upside to the 10% down requirement: because your loan-to-value starts at 90% or less, you pay annual MIP for 11 years rather than the full life of the loan. Borrowers who put down less than 10% (the 580-plus borrowers using the 3.5% option) pay MIP across the entire 30-year term.5HUD.gov. Appendix 1.0 – Mortgage Insurance Premiums
Then there’s your interest rate. Individual lenders set their own rates for FHA loans and price in the extra risk a lower score carries. The exact premium varies by lender and market, but borrowers in the 500-579 range commonly see rates one to two percentage points above what a 700-score borrower pays. On a 30-year, $270,000 mortgage, even a single point of difference adds roughly $55,000 to $60,000 in total interest over the life of the loan. Shop several FHA lenders. The spread between them matters more at your credit tier than at any other.
Expect Manual Underwriting
At 570, your file will almost certainly be routed to manual underwriting instead of automated approval. FHA guidance requires lenders to downgrade to a manual review when a borrower’s credit profile falls below the automated system’s thresholds.1U.S. Department of Housing and Urban Development. Does FHA Require a Minimum Credit Score and How Is It Determined? A person reads your file. They want the story behind the numbers: why your credit took a hit, how recently it happened, and what your payment behavior looks like now.
Two things to prepare for:
Cash reserves. You’ll need verified reserves equal to at least one full monthly mortgage payment sitting in your accounts after closing.4U.S. Department of Housing and Urban Development. Mortgagee Letter 2014-02 – Manual Underwriting
Letters of explanation. The underwriter will ask you to explain late payments, collections, charge-offs, or any other derogatory marks. Keep these brief and factual: what happened, when, and what has changed since. The underwriter isn’t looking for an apology. They want evidence that the circumstances were temporary and your current behavior is stable. If a medical crisis or job loss was involved, say so plainly and attach supporting documents like medical records or a layoff notice.
Income documentation is standard across lenders: recent pay stubs, W-2s from the past two years, and federal tax returns. Self-employed borrowers typically add 1099s and two years of business returns.6Consumer Financial Protection Bureau. Can a Lender Make Me Provide Documents Like My W-2 or Pay Stub in Order to Give Me a Loan Estimate?
Should You Wait and Push Your Score to 580?
For most buyers at 570, the answer is yes. Ten points changes your minimum down payment from 10% to 3.5%, opens the door to compensating factors that allow higher debt-to-income ratios, and typically improves your interest rate. On that $300,000 house, you free up roughly $19,500 in cash. You trade 11 years of MIP for the full-term version, but the up-front savings matter more to most borrowers at this credit level than the long-run insurance cost.
A 10-point gain is often achievable in a few months. The fastest levers:
- Pay down revolving credit card balances. Keeping utilization below 30% of your limits makes a noticeable difference.
- Dispute inaccurate negative items on your credit reports with the bureaus.
- Make sure every current account is paid on time, every month, without exception.
- Ask a family member with a long-standing, low-balance credit card to add you as an authorized user.
If you want structured help before applying, HUD recommends contacting a HUD-approved housing counseling agency. The counseling is free, and the agencies cover budgeting, credit repair, and the mortgage process itself. HUD’s helpline is 1-800-CALL-FHA.