: Eligible for a loan, but typically requires a 10% down payment . Below 500 : Generally ineligible for FHA-insured financing. The "Lender Overlay" Factor

While HUD allows scores as low as 500, most private lenders apply , which are stricter internal credit requirements. The Complete List of HUD Loan Requirements

The U.S. Department of Housing and Urban Development (HUD) sets baseline requirements for FHA loans, which are most commonly used to buy these homes: : Eligible for the 3.5% minimum down payment .

To purchase a (a foreclosed property originally insured by the Federal Housing Administration), you generally need a minimum credit score of 500 . However, the specific score required depends heavily on your desired down payment and the lender you choose. Credit Score & Down Payment Requirements