Edited and reviewed by CEO Vatche Saatdjian — 30+ years of experience — Expert on FHA loans
A 580 credit score opens the door to FHA homeownership in Nevada with just 3.5% down. Here's exactly how Las Vegas, Reno, and Henderson residents with 580-620 credit scores can maximize approval odds and secure competitive rates.
With a 580 credit score, you qualify for FHA's minimum 3.5% down payment in Nevada. This is significantly more accessible than conventional loans requiring 620-640 scores. However, Nevada lenders may apply overlays (additional requirements) even though FHA guidelines allow 580.
With 580 credit, aim for DTI below 40% (vs. the 43% maximum). Pay off small credit card balances, car loans, or personal loans before applying. Nevada example: If you earn $5,000/month, keep total debts under $2,000/month.
Nevada tip: Many Las Vegas hospitality workers have tip income. Document all income sources to lower your DTI ratio.
Save 2-6 months of mortgage payments in your bank account. This compensating factor shows Nevada lenders you can handle financial stress even with borderline credit. For a $2,000/month payment, have $4,000-$12,000 saved.
This money can remain in your account after closing—it's just for qualification purposes.
While 3.5% is the minimum, putting down 5-7% strengthens your Nevada FHA application dramatically. On a $400,000 Las Vegas home, increasing from $14,000 to $28,000 down can offset lower credit scores.
Gift funds from family members count toward this, and your entire down payment can be gifted.
2+ years with the same Nevada employer or in the same industry strengthens 580-credit applications. If you recently changed jobs, stay in the same field. Reno tech workers, Vegas casino employees, and Henderson retail workers benefit from documented industry stability.
Gaps in employment should be explainable (education, family leave, COVID-19).
Recent payment history matters more than old issues. Lenders want zero 30-day late payments in the last 12 months. If your rent, car payment, and credit cards have been on-time for a year, you're in strong position despite 580 credit.
Get rent payment verification from your Nevada landlord if you've paid on-time consistently.
| Factor | 580-619 Credit | 620+ Credit |
|---|---|---|
| Interest Rate | 0.25-0.75% higher | Standard FHA rates |
| Lender Options | Limited (some lenders have 600 minimum) | All FHA lenders available |
| Approval Likelihood | Moderate (needs compensating factors) | High |
| Documentation Required | More scrutiny on debts and income | Standard documentation |
Nevada Example: $400,000 loan at 6.5% (580 credit) = $2,528/month vs. $400,000 at 6.0% (620 credit) = $2,398/month. That's $130/month or $46,800 over 30 years. Consider improving credit if possible before applying.
FHA Home Loans approves Nevada FHA loans at 580 credit. Let's review your complete financial picture.