Yes, FHA guidelines allow borrowers with credit scores between 500-579 to qualify with a 10% down payment. However, not all FHA-approved lenders will accept scores below 580. NMHL works with multiple FHA lenders and can help identify those willing to work with your specific credit profile and financial situation.

For FHA loans with a 550 score, you need a minimum 10% down payment. For Non-QM and Bank Statement loans, expect 15-20% down. On a $275,000 home, FHA would require $27,500 down while Non-QM may require $41,250-$55,000. Down payment assistance programs may be available in your state to help bridge the gap.

The fastest ways to gain 30 points include: paying down credit card balances below 30% of limits (can add 10-20 points within one billing cycle), disputing and removing inaccurate negative items, and ensuring no new late payments. With focused effort, many borrowers see a 30-point improvement in 2-4 months. Reaching 580 unlocks FHA loans with only 3.5% down.

It depends on your specific situation. If home prices in your area are rising quickly, the cost of waiting could outweigh the savings from a lower rate. However, improving to 580+ typically saves $200-$400 per month in mortgage payments. An NMHL advisor can run both scenarios with current market data to help you make the best financial decision.