Edited and reviewed by CEO Vatche Saatdjian — 30+ years of experience — Expert on FHA loans

FHA CREDIT REQUIREMENTS

Your credit score won't stop you from owning a home

FHA loans in Nevada accept credit scores as low as 580 (or even 500 with 10% down). If you've been told "no" by other lenders, we specialize in finding approval paths—even when automated systems decline you.

Nevada's #1 Low-Credit FHA Specialist

We approve 2 out of 3 applicants with 580-620 scores other lenders turn away. Our manual underwriting team finds approval paths when automated systems say no.

580 Score OK
24hr Decision
$0 Lender Fees

Takes ~60 seconds • No credit check • Your info stays private

580
Min Score
3.5% Down
500
Min Score
10% Down
67%
Approval
Rate 580+
Happy woman checking FHA credit score qualification on tablet
247+
Nevada buyers approved in Jan 2025 with 580-620 scores
4.9
Average rating from Nevada FHA buyers

FHA Credit Score Requirements for Nevada (2025)

FHA loans have the most flexible credit requirements of any mortgage program. Here's exactly what you need to qualify in Las Vegas, Henderson, Reno, and throughout Nevada.

580+ Credit Score

3.5% Down

With a 580 or higher credit score, you qualify for FHA's minimum down payment of just 3.5%. This is the most popular FHA option for Nevada homebuyers and first-time buyers. On a $400K home, that's only $14,000 down.

Max DTI: 50% with compensating factors
Gift funds allowed for full down payment
Nevada avg approval time: 24-48 hours

500-579 Credit Score

10% Down

If your score is between 500-579, you can still get FHA approval but you'll need a 10% down payment. This is still lower than most conventional loans require (15-20% for similar credit). On a $400K home, you'll need $40,000 down.

Manual underwriting often required
Strong compensating factors needed
Still better than conventional options

Below 500 Credit Score

Not Eligible

FHA loans are not available with credit scores below 500. However, we can help you build credit to reach the 500 threshold in 3-6 months, or explore alternative financing options like seller financing or lease-to-own.

Credit repair strategies available
3-6 month timeline to FHA eligibility
Alternative financing available

No Credit Score?

Manual Review

FHA allows manual underwriting if you don't have enough credit history for a score. We'll use alternative credit like rent, utilities, insurance payments, and phone bills to qualify you. Common for young Nevada buyers or immigrants.

12 months alternative credit needed
Rent, utilities, insurance count
3.5% down with strong history

After Bankruptcy

2-3 Years

FHA allows you to qualify just 2 years after Chapter 7 bankruptcy discharge (3 years after Chapter 13 discharge). Your credit score must be at least 580 for 3.5% down. Scores typically rebuild to 620-680 in this timeframe.

Chapter 7: 2 years after discharge
Chapter 13: 3 years after discharge
Must show credit re-establishment

After Foreclosure

3 Years

You can qualify for FHA just 3 years after a foreclosure, short sale, or deed-in-lieu. This is much shorter than the 7-year waiting period for conventional loans, making FHA ideal for Nevada buyers rebuilding after housing crisis or financial hardship.

3 years from foreclosure completion
Same for short sale or deed-in-lieu
Must rebuild to 580+ credit score

Nevada FHA Credit Score Reality Check

While FHA guidelines allow 580 scores, many Nevada lenders require 620-640 minimum due to overlays (additional lender requirements). We specialize in 580-620 approvals that other lenders decline. Our manual underwriting team reviews every application individually rather than relying solely on automated systems.

Big Banks & Online Lenders

Typically require 640+ with minimal flexibility

Valley West Mortgage

True 580 minimum with manual underwriting expertise

Check Your Credit Eligibility Now

Soft credit check • No obligation • Nevada decision in 24 hours

How Credit Score Impacts Your FHA Loan in Nevada

Your credit score affects more than just approval—it impacts your interest rate, monthly payment, and total loan cost. Here's what Nevada homebuyers need to know.

Interest Rate Difference

A 580 credit score vs. 740+ can mean a 1-1.5% rate difference. On a $400,000 Nevada home, that's $200-300 more per month, or $72,000-108,000 over 30 years.

Easier Approval Process

Higher credit scores (680+) often get automated underwriting approval within 24-48 hours. Lower scores may require manual underwriting, adding 1-2 weeks to your timeline.

Seller Confidence

Nevada sellers often prefer buyers with 620+ scores because they're more likely to close. A strong credit pre-approval letter makes your offer more competitive in hot markets like Las Vegas and Henderson.

Lower Down Payment Options

With 580+ credit, you qualify for FHA's 3.5% down minimum. Below 580, you'll need 10% down—that's $26,000 more on a $400,000 Nevada home purchase.

Nevada homebuyer reviewing credit score impact on FHA mortgage rates

Credit Score Improvement Strategies

Proven methods to boost your credit score and improve your Nevada FHA loan approval odds within 30-90 days.

Pay Down Credit Cards

Keep credit card balances below 30% of your limit (under 10% is ideal). This can boost your score by 50-100 points within 30 days.

Pro Strategy

Pay cards multiple times per month before statement closing dates to keep reported balances low.

Dispute Credit Errors

Review all three credit reports for errors. Up to 34% of consumers find mistakes that can be disputed and removed, instantly boosting scores.

Free Resources

Get free reports at AnnualCreditReport.com from Experian, Equifax, and TransUnion.

Pay All Bills On Time

Payment history is 35% of your score. Set up automatic payments for utilities, phone, rent to avoid any late payments before applying.

Timeline Impact

Even one 30-day late payment can drop scores by 60-110 points. Keep current for 6+ months before applying.

Avoid New Credit Inquiries

Each hard inquiry can lower scores by 5-10 points. Stop applying for new credit cards, auto loans, or retail cards 6 months before FHA application.

Important Note

Mortgage rate shopping within 45 days counts as one inquiry. Shop lenders within this window only.

Become Authorized User

Ask someone with excellent credit (parent, spouse) to add you as authorized user on their oldest card with low utilization.

Score Boost

Can increase scores by 20-50 points within 30 days. Works best if primary holder has 10+ years of history.

Use Rent Payment History

Services like Experian Boost, RentTrack, or Rental Kharma report rent payments to credit bureaus, adding positive payment history instantly.

Nevada Renters

Especially valuable for Las Vegas, Reno, Henderson renters with limited credit history. Free to use.

Credit Score Timeline

How Long to Improve Your Credit Score?

30
Days

Pay down credit cards below 30% utilization, become authorized user on established account

60
Days

Dispute and remove credit report errors, establish 2+ months of on-time payments

90+
Days

Collections removed, charge-offs settled, establish consistent payment patterns across accounts

Our Nevada FHA specialists can review your credit and create a personalized improvement plan

Nevada Credit Guide

Alternative Credit Options

If you don't have traditional credit, FHA allows manual underwriting with alternative credit sources. Nevada homebuyers can qualify using:

Rent Payment History

12+ months of canceled checks or money orders showing timely rent payments to Nevada landlord

Utility Bill Payments

Electric, gas, water, internet, or phone bills in your name paid on time for 12+ months

Auto Insurance Payments

Nevada car insurance premiums paid consistently for 12+ months with no lapses in coverage

Cell Phone Bills

Mobile phone account in your name with 12+ months of on-time payments documented

Manual Underwriting Requirements

You'll need at least 3 types of alternative credit with 12-month payment history. No late payments allowed in past 12 months. Our Nevada FHA specialists handle manual underwriting regularly.

A smiling couple collaborates on financial planning at home, using a laptop and discussing important documents. Their teamwork and organization reflect a positive and balanced lifestyle.
No Credit? No Problem
We specialize in alternative credit

Over 40% of our approved Nevada FHA borrowers use alternative credit sources. You're in good hands.

Compensating Factors

Even with lower credit scores (580-620), Nevada FHA borrowers can strengthen their application with compensating factors that demonstrate financial responsibility and lower risk:

Higher Down Payment: 10% or more reduces lender risk significantly
Cash Reserves: 3-6 months of mortgage payments saved post-closing
Low Debt-to-Income: DTI under 35% shows strong financial management
Stable Employment: 2+ years with same Nevada employer or in same field
Income Growth: Documented raises or promotions showing upward trajectory
Minimal Credit Utilization: Using less than 20% of available credit limits
Success Story

590 Credit Score Approved

590
Credit Score
Approved
FHA Loan

"I thought my 590 credit score would disqualify me, but with 15% down and 8 months of reserves, I was approved for my Las Vegas home. The team walked me through every compensating factor."

— Maria R., Las Vegas FHA Homeowner

FHA Credit Score FAQs

Get answers to common questions about credit requirements for FHA loans in Nevada.

Ready to see if you qualify with your current credit score?