FHA actually allows for scores down to 500 with a 10% down payment or equity in the house. The problem is that there are not any lenders willing to take on that risk. Most lenders require a 640 min credit score, and 3 open and active trade-lines for the last 12 months. There are some FHA portfolio lenders that will go down to a 530 credit score with 10% down payment or equity in the house. We work with some FHA portfolio lenders that allow 10% down with a 530 credit score. Also if you have a 580 score you can put down 3.5%. These same lenders will allow non-traditional credit, like rental pmts., utility bills, insurance, etc. We also work with a lender that if you have a 600 credit score no min. trade-lines are required.