An FHA loan at 580 is the fastest path to homeownership for most San Antonio buyers with low credit. At 3.5% down on the $290,000 SA metro median, you need $10,150. The City of San Antonio HIP program can cover all of it at 0% interest when funded, though HIP is paused for FY 2026. If renewed by City Council, it may reopen October 2026. At 620+, TSAHC and SETH statewide DPA remain active now. FHA does not require perfect credit, large savings, or first-time buyer status. It requires a 580 score, documented income, and a debt-to-income ratio the automated system can approve. This page covers exactly what FHA requires at 580 in San Antonio, what it costs, and how to get from where you are to pre-approval.
FHA at 580 in San Antonio at a glance
Three things buyers ask first about FHA at 580
Can I get an FHA loan with a 580 credit score in San Antonio?
How much house can I afford with FHA at 580 in San Antonio?
Should I buy now at 580 or wait for 620?
What FHA actually requires at a 580 credit score
FHA at 580 has six concrete requirements: a 580 middle FICO score, 3.5% down payment, two years of employment history with gaps explained, two years of tax returns or W-2s, a front-end DTI at or below 31% of gross income for housing costs, and a back-end DTI at or below 43% for all debts. The automated underwriting system may approve higher DTI if compensating factors exist. Self-employed borrowers need two years of tax returns showing consistent income. The documentation list is specific and finite.
The non-obvious issue is that the 580 score is a gate, not a guarantee. FHA’s automated underwriting system reads the full credit report, not just the score. A buyer at 585 with a 30-day late payment in the last 6 months may fail the automated system and require manual underwriting, which fewer lenders offer. A buyer at 582 with 12 months of clean payment history passes the system cleanly. The score opens the door, but the recent payment pattern is what the system evaluates most heavily. This is why a lender credit review, where someone reads the actual report, matters more than a Credit Karma number.
- Credit score: 580 minimum for 3.5% down. 500 to 579 requires 10% down ($29,000 on the SA median).
- Down payment: 3.5% of purchase price. $10,150 on $290,000. DPA can cover it entirely.
- Employment: 2 years of history. Gaps must be explained but do not disqualify.
- Income documentation: W-2s, recent pay stubs, tax returns if self-employed. 2 years required.
What FHA at 580 actually costs on a San Antonio home
On the $290,000 SA metro median, FHA at 580 with 3.5% down produces a total monthly payment of approximately $2,445 including principal, interest, property tax, homeowner’s insurance, and FHA mortgage insurance. Bexar County’s effective property tax rate of 2.2% adds $532 per month. Texas homeowner’s insurance at 0.81% adds $196 per month. FHA MIP at 0.55% annually adds $128 per month. At the entry-level $200,000 price point, which covers much of the South Side, West Side, and Converse, the total payment drops to approximately $1,686 per month.
The non-obvious issue is that the income requirement is driven by property tax, not the mortgage itself. At the $200,000 entry level, a household earning $65,000 per year qualifies. But Bexar County’s 2.2% tax rate adds roughly $367 per month at that price, pushing the income floor higher than it would be in a lower-tax county. Buyers shopping in Comal County or Guadalupe County adjacent areas may find lower effective tax rates that change the qualification math substantially. Use our San Antonio affordability calculator to model your specific income and target price.
| Cost | At $290K Median | At $200K (entry-level) | At $350K |
|---|---|---|---|
| Down payment (3.5%) | $10,150 | $7,000 | $12,250 |
| Monthly P and I at 6.5% | $1,768 | $1,220 | $2,135 |
| Monthly tax (2.2%) | $532 | $367 | $642 |
| Monthly insurance (0.81%) | $196 | $135 | $236 |
| Monthly FHA MIP (0.55%) | $128 | $89 | $155 |
| Total monthly PITI | ~$2,624 | ~$1,811 | ~$3,168 |
| Income needed (31% housing) | ~$101,600/yr | ~$70,100/yr | ~$122,600/yr |
- Entry-level opportunity: At $200,000, a household earning $70,000 qualifies with FHA at 580. The City HIP 80 program covers the entire $7,000 down at 0% interest when funded.
- Rate sensitivity: Every 0.5% rate increase adds roughly $80 per month on a $290,000 loan. FHA rates at 580 are typically 0.25% to 0.50% higher than at 700+.
- Tax protest opportunity: Bexar County allows annual property tax protests. A successful protest reducing assessed value by $20,000 saves roughly $37 per month, which directly reduces the income needed to qualify.
How down payment assistance eliminates the cash barrier
The most common reason San Antonio buyers at 580 do not pursue FHA is the down payment. They assume they need $10,150 cash on hand. Multiple programs exist to cover it. The City of San Antonio HIP 80 program provides up to $30,000 at 0% interest, forgivable over 5 to 10 years, for buyers at or below 80% of Area Median Income. On a $290,000 home, HIP covers the $10,150 down plus all closing costs with money remaining. HIP is currently paused for FY 2026 and may reopen October 2026 when City Council decides on new funding.
The non-obvious issue is the 580-to-620 DPA gap. At 580, FHA is available but no currently-active statewide DPA program accepts that score. TSAHC requires 620. SETH requires 620. The buyer at 580 must either use City HIP when funded or come up with the $10,150 out of pocket. At 620, the buyer gets TSAHC covering most or all of the down payment, plus SETH as an alternative, plus eligibility for My First Texas Home. This means the 3 to 6 month credit path from 580 to 620 has a concrete dollar value: approximately $10,000 in DPA that becomes available when you cross the threshold. For the full program breakdown, see our DPA guide.
- City HIP 80: Up to $30,000 at 0% interest, forgivable over 5-10 years. Buyers at or below 80% AMI. Paused FY 2026. If renewed by City Council, may reopen October 2026. Home price cap $263,000 existing, $278,000 new construction.
- City HIP 120: Up to $15,000 at 0% interest, no monthly payments. Buyers at or below 120% AMI. Covers FHA down on homes up to roughly $430,000. Also paused FY 2026.
- TSAHC Home Sweet TX: Up to 5% of loan as grant. Requires 620+ score. Active and accepting applications now. No first-time buyer restriction on all programs.
- Layering: Some programs allow combining city and state assistance. An LRG agent identifies which combinations apply to your income and purchase price.
What FHA at 580 costs you long-term
FHA at 580 is the fastest path, but it is not free. The biggest long-term cost is mortgage insurance permanence. FHA MIP at 0.55% annually cannot be removed regardless of equity for loans with less than 10% down. On a $280,000 loan amount, that is $128 per month for the life of the loan. Conventional PMI at 620+ drops off once you reach 20% equity. Over 30 years, FHA MIP on a $280,000 loan adds roughly $46,000. Conventional PMI on the same loan costs $12,000 to $15,000 before dropping off. The difference is approximately $31,000 to $34,000.
The non-obvious issue is that almost nobody keeps an FHA loan for 30 years. The average mortgage lifespan in the US is 7 to 8 years before a refinance, sale, or payoff. A buyer who takes FHA at 580, rebuilds credit to 680 over 18 to 24 months, and refinances to conventional eliminates the MIP entirely. The refinance costs $3,000 to $6,000 in closing costs. Over that 7-year horizon, the total MIP paid is roughly $10,000, not $46,000. The refinance-out strategy makes FHA at 580 a bridge loan, not a life sentence. The counter-argument against waiting: 6 months of SA rent at $1,689 costs $10,134 in rent with zero equity built.
- MIP for life: FHA MIP at 0.55% cannot be removed with less than 10% down. $128/mo on the $290K median.
- Refinance escape: Once your score reaches 680 and you have 20% equity, refinance to conventional and eliminate MIP. Cost: $3,000-$6,000 in closing.
- Higher rate at 580: FHA rates at 580 are typically 0.25% to 0.50% higher than at 700+. On a $280,000 loan, that adds $40 to $80 per month.
- The waiting cost: 6 months of rent at $1,689 = $10,134 with zero equity. 6 months of FHA payments build roughly $3,000 to $4,000 in equity.
The path from your current score to FHA qualification
If your score is between 500 and 579, you are close. The actions that move a score from 550 to 580 are specific and measurable. Dispute errors on all three bureau reports, which takes 30 to 45 days to resolve. Pay revolving balances below 30% utilization, which is often the single fastest improvement and can add 20 to 40 points per card. Set up automatic payments on every account. Stop opening new credit. A buyer at 560 doing all four actions simultaneously can reach 580 in 1 to 3 months.
The non-obvious issue is the difference between VantageScore and FICO. Credit Karma and most free monitoring apps show VantageScore 3.0. Mortgage lenders use FICO Score 5 from Equifax, FICO Score 2 from Experian, and FICO Score 4 from TransUnion. The two models can differ by 20 to 80 points. A buyer who sees 590 on Credit Karma may have a 550 FICO, which puts them 30 points below FHA. Or they may have a 610, which means they are already qualified. The only way to know your real mortgage score is a lender credit pull. This is free and does not obligate you to anything. For the complete 12-month rebuild plan, see our credit repair guide.
- Dispute errors: 1 in 4 credit reports contain errors that lower the score. Resolution takes 30 to 45 days per dispute.
- Pay below 30% utilization: Each card brought below 30% can add 20 to 40 points. Start with the highest-utilization card.
- Do not close old accounts: Closing shortens average credit age and reduces available credit, both of which lower the score.
- Rapid rescore: Once changes are made, a lender orders a rapid rescore in 3 to 5 business days, reflecting updated balances immediately.
FHA at 580 now versus conventional at 620 in 6 months
This is the most common decision San Antonio low-credit buyers face. At 580, FHA is available now with 3.5% down and permanent MIP. At 620, conventional is available with 5% down and removable PMI, plus TSAHC and SETH DPA grants that cover most of the down payment. The 3 to 6 month wait to reach 620 opens substantially better terms. But those months cost rent, and rent builds zero equity. On the $290,000 median, 6 months of waiting costs $10,134 in rent versus starting to build roughly $3,000 to $4,000 in equity over the same period as a homeowner.
The non-obvious issue is that the DPA availability at 620 can flip the entire calculation. A buyer at 580 who needs $10,150 out of pocket for the down payment but has only $3,000 saved cannot close. That same buyer at 620 qualifies for a TSAHC grant covering the down payment and can close with minimal cash. The credit work to reach 620 is not just about a better rate. It is the difference between being able to close and not being able to close. A lender can model both paths: buy now at 580 with whatever cash you have, or wait for 620 with DPA covering the gap. The right answer depends on your savings, your rent, and how fast your score is moving.
| Factor | FHA at 580 (buy now) | Conventional at 620 (wait 3-6 mo) |
|---|---|---|
| Down payment | 3.5% = $10,150 | 5% = $14,500 (DPA covers) |
| Mortgage insurance | 0.55% for life of loan | PMI drops at 20% equity |
| DPA available | City HIP when funded only | TSAHC, SETH, My First TX |
| Rent cost while waiting | $0 (buying now) | $5,067 to $10,134 |
| Equity built during wait | $3,000-$4,000 in 6 months | $0 |
| Long-term MIP cost (7-yr hold) | ~$10,752 | ~$4,800 before PMI drops |
What FHA underwriters evaluate beyond the credit score
The credit score gets you through the door. The underwriter reads the full file. FHA’s automated underwriting system evaluates payment history patterns, number and recency of collections, charge-off timing, debt-to-income ratio, employment stability, and asset reserves. A buyer at 582 with 12 months of perfect payment history passes the automated system. A buyer at 595 with a mortgage late payment 4 months ago may get a Refer, meaning the file needs manual underwriting, which fewer lenders offer.
The non-obvious issue is that collections do not all count the same way. Medical collections are weighted less heavily and those under $500 are excluded from most scoring models entirely. Non-medical collections with no payment plan do not count toward DTI unless the lender adds 5% of the balance as a monthly obligation. Collections with a payment plan count at the plan amount. This means a buyer with $12,000 in medical collections but a clean 12-month payment history can qualify, while a buyer with a single $300 recent non-medical collection plus a 30-day late payment may not. The composition of the report matters more than the total balance of negative items.
- Payment history is king: The most recent 12 months of on-time payments matters more than anything else in the file. A single late in the last 6 months can trigger a Refer.
- Collections strategy: Non-medical unresolved collections: 5% of balance counted as monthly debt. Medical under $500: excluded. Medical over $500: reduced weight. Address non-medical collections first.
- Asset reserves help: 2 to 3 months of mortgage payments in savings after closing strengthens the file. Not required for FHA, but a compensating factor that can offset borderline DTI.
- Employment gaps: FHA allows gaps if explained. A 3-month gap between jobs 18 months ago with a letter of explanation does not disqualify. Current stable employment is what the system weights most.
FHA at 580 is not a consolation prize
FHA at 580 is the program that puts more Americans into their first home than any other loan product. In San Antonio, it pairs with up to $30,000 in city down payment assistance to create a genuine zero-out-of-pocket path when HIP is funded. The MIP is a real cost, but it is a cost you pay while building equity in a home you own, not while paying rent on a home you will never own. The refinance-out strategy eliminates MIP within 18 to 24 months for buyers who rebuild credit after purchase.
The non-obvious advantage of starting the FHA conversation now, even if you are below 580, is that the lender credit review is the single most valuable step in the process. It tells you your actual FICO score. It identifies the specific items to address. It maps the timeline to 580, 620, and 700. And it costs nothing. Buyers who start the conversation soonest buy soonest. Buyers who wait until they feel ready add months to the timeline because they do not know what the timeline actually is.
