Your credit score doesn't have to be perfect

The official FHA minimum is 500, but this requires a 10% down payment and is difficult to find approval with. Realistically, 580 is the practical minimum, allowing 3.5% down. Many Nevada lenders require 600-620 due to their own overlays. Credit scores below 580 face significant challenges and usually need credit repair before approval.

Yes, FHA is designed for borrowers with imperfect credit. If you have a 580+ credit score, you can qualify for 3.5% down FHA financing in Las Vegas, Henderson, or anywhere in Nevada. Scores of 500-579 require 10% down and are harder to approve. Work with an FHA specialist who understands compensating factors and has access to lenders without strict overlays.

Credit score significantly impacts your interest rate through risk-based pricing. A borrower with a 740 credit score might get 6.5% APR, while a 580 score borrower might get 7.5-8% APR on the same loan. This 1% difference equals roughly $200/month more on a $300,000 loan, or $72,000 over 30 years. Improving your score before buying saves substantial money.

Compensating factors that strengthen your FHA application with lower credit include: larger down payment (10-20%), low debt-to-income ratio (under 35%), significant cash reserves (6+ months), stable employment history (2+ years same job), minimal housing payment increase, and strong recent credit history (12+ months of on-time payments). These factors prove you're a responsible borrower despite past credit challenges.

Yes! FHA has shorter waiting periods than conventional loans. After Chapter 7 bankruptcy, you can qualify in 2 years (vs 4 years conventional). After Chapter 13 bankruptcy, you can qualify in 1 year with court approval. After foreclosure, the waiting period is 3 years (vs 7 years conventional). You'll need to rebuild credit during the waiting period and show responsible credit management since the event.

Lenders pull credit from all three bureaus (Experian, TransUnion, Equifax) and use the middle score for qualification. If your scores are 560, 590, and 610, your middle score of 590 is used - which qualifies for 3.5% down FHA. Focus on improving all three scores, but understand that the middle score is what matters most. If you're right on the borderline, a rapid rescore might push you over the threshold.

Mortgage credit inquiries have minimal impact when shopping for a loan. All mortgage inquiries within a 14-45 day window count as a single inquiry (typically 5 points or less). This "shopping period" lets you compare lenders without hurting your score. However, avoid other credit applications (cars, credit cards) during your home search, as those are counted separately and can add up.

FHA allows manual underwriting for borrowers with no credit score ("thin files"). You'll need to provide 12 months of alternative credit history: rent payments, utility bills, phone bills, and insurance payments all paid on-time. This is common for young buyers, recent immigrants, or those who primarily use cash. Manual underwriting takes longer but is a viable path to FHA approval without a traditional credit score.