FHA loans have the most lenient credit requirements of any major mortgage program. Here's exactly what you need to qualify at different credit levels.
Standard FHA Approval
Minimum 3.5% down payment – lowest in the industry
Debt-to-income up to 43% (50% with compensating factors)
Recent credit issues considered with explanation
Gift funds allowed for entire down payment + closing costs
No seasoning required on collections or charge-offs
Nevada Example: $400K home purchase with 580 credit requires only $14,000 down (3.5%) plus approximately $8,000-12,000 closing costs.
Apply with 580+ CreditHigher Down Payment FHA
Minimum 10% down payment required by FHA
More strict DTI requirements (typically max 43%)
Strong compensating factors help approval odds
Manual underwriting likely required
Limited lender availability – not all lenders approve
Nevada Example: $400K home with 550 credit requires $40,000 down (10%) plus closing costs. Consider improving credit to 580+ to save $26,000 on down payment.
Discuss 500-579 OptionsIf your credit score is between 500-579, consider waiting 3-6 months while improving your credit to 580+. The extra time investment can save you $26,000 on down payment on a $400K Nevada home purchase (reducing from 10% to 3.5% down).
Keep credit utilization under 30%. Paying down credit cards can boost scores 20-50 points in 1-2 months.
Set up autopay for all bills. Payment history is 35% of credit score. One late payment can drop scores 50-100 points.
Check credit reports for mistakes. Disputing errors with credit bureaus can quickly boost scores if inaccuracies exist.
Ready to see if you qualify for FHA financing?
Check Your FHA Eligibility NowSoft credit check • Nevada FHA specialists • NMLS #65506
Even with lower credit scores, strong compensating factors significantly improve FHA approval odds. Lenders consider these positive factors during manual underwriting.
Down payments exceeding minimum requirements demonstrate financial discipline. 15-20% down with lower credit significantly strengthens your application.
Savings equivalent to 3-6 months of mortgage payments after closing shows lenders you can handle financial emergencies.
2+ years with same employer or in same field demonstrates income stability. Nevada's gaming, hospitality, and tech sectors value longevity.
Documented raises or promotions show increasing earning power. Tax returns demonstrating 10-20% annual income growth strengthen applications.
DTI below 36% (when 43-50% is max) shows you're not overextended. Low monthly obligations relative to income indicate payment capacity.
12-24 months of on-time rent payments documented by landlord or through rent reporting services proves housing payment reliability.
Completion of HUD-approved homebuyer education course demonstrates commitment and financial responsibility. Many Nevada housing programs offer free classes.
Documented explanations for past credit issues (medical emergency, job loss, divorce) with proof of recovery help underwriters understand circumstances.
Avoiding new credit inquiries or accounts in the 6-12 months before applying shows financial discipline and stability to lenders.
FHA loans with credit scores below 620 or unusual circumstances typically require manual underwriting. An experienced underwriter reviews your complete financial picture rather than relying solely on automated systems. Manual underwriting considers compensating factors, employment stability, and your full story.
Human review of entire application
Context considered for credit issues
Compensating factors weighted heavily
Non-traditional credit accepted
FHA has two credit score tiers with different down payment requirements. Here's exactly what you need to qualify in Nevada.
Standard FHA Tier
Alternative FHA Tier
While FHA technically allows 500 credit scores, most Nevada lenders set their minimum at 580 for practical reasons. The good news? 580 is still significantly lower than conventional loans (typically 620-640 minimum), making FHA the best option for credit-challenged buyers in Las Vegas, Reno, and Henderson.
FHA loans offer Nevada's most flexible credit requirements. Learn the minimum credit score for FHA approval, how to qualify with 580 or even 500 credit, and strategies to maximize your chances in Las Vegas, Reno, and Henderson.
As Low as 500
3.5% Down
Flexible Terms
FHA Qualification Requirements
3.5% minimum down payment
10% minimum down payment
Typically requires credit repair first
Complete guide to FHA credit score minimums for Nevada homebuyers. Learn the true minimum credit score for FHA loans (580 or 500), compensating factors, credit improvement strategies, and how Las Vegas and Reno buyers with challenged credit can still get approved.
580 Minimum
3.5% Down
Flexible Options
Qualify with 3.5% Down Payment