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

You can get a FHA loan with a 640 credit score, as it's well above the FHA's minimum of 3.5% down for a 580 score or 10% down for a 500 score. However, getting approved for this loan goes beyond just your credit score.

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

However, even if you meet these minimum requirements, there's no guarantee that you'll be approved. 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 or higher.

Your credit score isn't the only factor a lender considers when deciding on your loan application, either. Other factors that matter:

• Debt-to-income ratio. A common benchmark is a DTI under 43%, though lenders can sometimes go higher with compensating factors.
  
• Cash reserves. Available savings after the down payment and closing costs.
• Recent credit problems. Meeting the minimum score might not be enough if you have late payments, collections, or tax problems.
• Occupancy. The home generally has to be an owner-occupied property, not an investment or vacation home.
• Property condition. An FHA-approved appraiser must assess the home’s value and confirm it meets FHA’s minimum property requirements.
• Mortgage insurance. FHA loans require it, and it adds to your monthly cost.

When applying for a mortgage at a 640 credit score, get quotes from two or three lenders, since their overlays and rates differ. Also compare the total cost with a conventional loan. At 640 you may qualify for either, and the mortgage insurance on each can make a real difference over time.

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

With a 640 score you can get approved for most mortgage types. The catch is price: you’ll be in a middle-to-lower pricing tier, so the work is mostly in choosing the right loan and comparing offers. It may also be helpful to understand what rates, loan terms, and down payment requirements to expect.

Down payment requirements at 640

At 640, the credit score doesn’t push your down payment above the standard minimums for the main loan types.

At 640, a bigger down payment helps in a few ways even though it isn’t required. On a conventional loan, 20% down eliminates private mortgage insurance, which is expensive at your score. A larger down payment can also improve your rate and give you more leeway if your debt-to-income ratio is tight.

On FHA, mortgage insurance is required regardless of down payment, but putting 10% or more down can shorten how long you pay it, so ask lenders about that.

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 November 2026, for example, the average rate for a 30-year FHA mortgage was 6.89%. 

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.

Help build your credit report by reporting your rent payments. If you've been renting before buying a home, some credit-monitoring apps help you report your on-time rent payments to credit bureaus. Kikoff's Credit Service plans report up to two years of past payments to Equifax and TransUnion, and only positive payments are reported.

Bottom line

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 your loan's lifetime.

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