Can I Get Approved for an FHA Loan With a 640 Credit Score?

You might have heard that you can’t get a mortgage without good credit, but that’s not true. There’s no universal minimum score required by all lenders, and many people with fair credit scores can become homebuyers.

Whether you can get a mortgage with a credit score of 640 depends on the type of loan you’re getting, your financial situation, and the rest of your credit profile. Federal Housing Administration (FHA) loans are known for having more flexible credit requirements than many conventional mortgages.

Learn how homebuyers can get an FHA loan with 640 credit scores.

Can people get approved for an FHA loan with 640 credit scores?

Yes, you can get approved for an FHA loan with a credit score of 640. There is a set FHA loan credit score minimum, which varies based on the down payment you’re able to make:

• Down Payment of at Least 3.5%: Minimum score of 580
• Down Payment of at Least 10%: Minimum score of 500

This is good news for anyone with a lower credit score who is otherwise ready to buy a house. However, even if you meet these minimum requirements, there’s no guarantee that you’ll be approved.

Why? Individual lenders that work with the FHA can set stricter requirements to manage risk. These are known as “overlays.”

For instance, even though the FHA has a minimum credit score requirement of 580 for a homebuyer who has saved a 3.5% down payment, an individual lender might set a minimum score of 620.

If a lender sets an overlay for FHA loans, it’s typically 620 or 640. This means that a credit score of 640 gives you a very good chance of being approved, as long as you’re financially ready to buy the home.

What getting a mortgage with a 640 credit score looks like in practice

Getting approved for a mortgage is a victory. But what comes next? Before you apply, it may be helpful to understand what rates, loan terms, and down payment requirements to expect.

Down payment requirements at 640

A score of 640 means that you can get an FHA mortgage with a minimum down payment of 3.5%. However, if you are able to make a larger down payment, you should consider doing so. A larger down payment reduces the principal of your loan, so you’ll have smaller monthly payments and pay less in interest over time.

What rates and terms to expect

For borrowers with credit scores around 640, FHA loan rates are typically lower than rates for conventional mortgages. Like other mortgage rates, however, FHA loan rates fluctuate with the market. In April 2026, for example, the average rate for a 30-year FHA mortgage was 6.44%. 

No matter what kind of loan you get, having a higher credit score means that you’ll probably qualify for a lower interest rate. With a lower rate, your monthly payment will be lower. So will the total amount you pay for your home.

As an FHA borrower, you’ll pay monthly mortgage insurance premiums (MIPs). This insurance protects your lender if you default on the loan. How much you pay for MIP depends on a few different factors. Here are some of the most important things to know:

• You must make a one-time payment of 1.75% of the loan amount
• You also must pay a monthly premium based on the loan size and loan-to-value (LTV) ratio
• If your down payment is less than 10%, you must pay MIP over the life of the mortgage
• If your down payment is at least 10%, you may stop paying MIP after 11 years

The one-time payment of 1.75% can be substantial. Fortunately, you can typically add it to your mortgage and pay for it over time.

Lenders that may work with a 640 score

Most lenders who work with the FHA to underwrite loans will accept borrowers with a 640 credit score. If your score is lower than 640, it can be more difficult to find a lender who will work with you.

If you’re considering a specific FHA lender, check its website to see if it lists a minimum score requirement for FHA borrowers. If you don’t see a requirement listed, get in touch with the lender and ask.

What to do if you're at 640 and want to buy soon

Although a score of 640 is well above the FHA loan credit score minimum of 580, increasing your credit score could still lower your interest rate and save you a considerable amount of money over time.

When deciding whether to extend credit to you, lenders will often consider how your credit score compares to those of other people. There are five general score ranges:

• Exceptional: 800–850
• Very Good: 740–799
• Good: 670–739
• Fair: 580–669
• Poor: 300–579

A score of 640 fits into the “fair” range, meaning that while you’re likely to get approved for a mortgage, you probably won’t get the best rate available. 

If possible, take some time to improve your credit score and lower your debt before you buy a home. Here are a few steps that might help:

• Pay down outstanding debt to improve your score and reduce your debt-to-income ratio
• Check your credit report for any errors
• Save money for a larger down payment

Before you start shopping for a house, take the time to get pre-approved for a mortgage. That way, you’ll have a better understanding of how much you can afford.

Want to boost your credit score before you buy?

You now know that it’s definitely possible to get an FHA loan with 640 credit score. However, if you can improve your score before you apply, you could secure a lower interest rate. Even a seemingly small difference in your interest rate can make a difference of thousands of dollars over the life of your loan.

If you want to improve your credit but don’t know where to start, Kikoff is here for you. We’re a credit-builder app designed to help those with poor credit, limited credit, or no credit boost their scores.

We connect our members with credit lines, secured credit cards, and other credit-building tools, and we make it easy to work on your credit right from your phone. We also help you keep track of bills and spending while offering useful insights to help you improve your finances.

We don’t check your credit when you sign up, and getting started is free. Create your account with us today!