Mortgage Rates by Credit Score
Best Mortgage Rate for 580 Credit Score
A 580 credit score is below the 620 Conventional minimum. You qualify primarily for FHA (3.5% down at 580+) and may qualify for VA loans depending on the lender's overlay. The pricer below shows live FHA and VA rates for this FICO bracket.
FHA Loan Facts
- Down payment as low as 3.5% with 580+ credit score
- Down payment assistance programs available to fully cover the 3.5% down payment
- Credit scores 500-579 require 10% down payment
- Upfront Mortgage Insurance Premium (UFMIP) of 1.75% - can be financed into the loan
- Annual MIP of 0.55% for most loans - required for the life of the loan with less than 10% down
- Maximum DTI up to 57% with compensating factors
- Primary residence only - properties up to 4 units eligible
- FHA 203(k) renovation loans available for fixer-uppers
How 580 FICO Affects Pricing
| Program | Min FICO | Your standing at 580 | Notes |
|---|---|---|---|
| Conventional | 620 | Not eligible | Risk-based pricing adjustments stack below 740 FICO |
| FHA | 580 (3.5% down) | Eligible | Most rate-friendly program at lower FICOs |
| VA | No published min | Eligible (subject to lender overlay) | 0% down, no MI - veteran/active-duty only |
Frequently Asked Questions
What is the best mortgage rate for a 580 credit score?+
The "best" rate depends on loan program, LTV, occupancy, and lock period. The pricer above returns live wholesale rates for a 580 FICO across Conventional, FHA, and VA. A 580 credit score is below the 620 Conventional minimum. You qualify primarily for FHA (3.5% down at 580+) and may qualify for VA loans depending on the lender's overlay. The pricer below shows live FHA and VA rates for this FICO bracket.
Can I get a Conventional loan with a 580 FICO?+
No. The Conventional minimum is 620. At 580 FICO, your options are FHA (3.5% down at 580+) and possibly VA depending on the lender's overlay.
Is FHA or Conventional better at a 580 credit score?+
FHA is your only conventional-class option at this FICO bracket. Conventional requires 620 minimum.
Will I get a worse rate with a 580 FICO than someone with 780 FICO?+
Yes - on Conventional loans specifically. Fannie Mae and Freddie Mac apply risk-based pricing adjustments based on FICO and LTV. The difference between a 580 FICO and a 780 FICO on a 95% LTV Conventional purchase can be roughly 0.5% to 1.5% in rate equivalent. FHA and VA pricing is less FICO-sensitive in middle brackets.
How can I improve my mortgage rate at 580?+
Three highest-impact moves: (1) increase your down payment to drop into a lower LTV bucket (each LTV bucket - 95, 90, 85, 80, 75 - is a meaningful pricing step), (2) pay off revolving balances to lift your FICO into the next 20-point bucket, (3) shop wholesale brokers vs retail. Rate Direct shows live wholesale pricing for your exact 580 FICO bucket.
Is the $2,000 Best Price Guarantee available at a 580 FICO?+
Yes - the Loan Factory $2,000 Best Price Guarantee is FICO-agnostic. It applies to qualifying fixed-rate Conventional, FHA, and VA loans of $200,000+ regardless of credit score, as long as the loan closes.
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