Key Takeaways
- You can get a home loan with a 600 credit score when you meet a lender’s income and debt requirements.
- The most common 600 credit score home loans include FHA, VA, and select non-QM programs.
- You can get an FHA loan with a 600 credit score since it only requires a 580 score.
- Buying a house with a 600 credit score is possible, but you’ll pay higher interest rates.
How to buy a house with a 600 credit score
If you’re wondering, “Can I buy a house with a 600 credit score?” the answer is yes. A 600 credit score home loan gives you a path to homeownership when you have a steady income and manageable monthly debts. With the right loan program, you can absolutely buy a house with a credit score of 600.
In this article (Skip to...)
- Qualifying with low credit
- 600 credit score home loans
- How 600 scores affect rates
- Improving low scores
- FAQ
Can I buy a house with a 600 credit score?
Yes, you can qualify to buy a house with a 600 credit score. Several loan programs support buyers in this lower credit score range, but you still need to meet lender requirements.
- Lenders must verify your income and confirm your ability to afford a mortgage payment. If you’re self-employed, you may have to submit bank statements or evidence of steady income.
- Most buyers need at least two years of steady employment. Although some lenders make exceptions when your overall loan application is strong.
- Your credit history must be good, too. This means no late payments or negative information has been reported to the credit bureaus within the past 12 months.
- Your existing debt-to-income ratio can't be too high. To qualify for a mortgage, your total debts, including the future home loan, typically need to be under 45% of your pre-tax income.
For example, if your monthly income is $5,000 and you pay $750 toward debts, your DTI is 15%. That $750 might include a minimum credit card payment, an auto loan, or other recurring expenses. Lenders use this DTI ratio to determine how much of the home’s purchase price you qualify for.
Verify your mortgage eligibility. Start here
Types of 600 credit score home loans
There are several 600 credit score home loans available to both first-time home buyers and repeat borrowers. These options include mortgage loans from government agencies, such as those from the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA).
Check your loan options. Start hereFHA loans
You can qualify for an FHA loan with a 600 credit score because the FHA offers flexible credit guidelines to first-time home buyers. Some applicants are even eligible for an FHA loan with a 580 credit score.
VA loans
Many buyers qualify for a VA loan with a 600 credit score because the VA offers relaxed credit requirements for eligible service members, veterans, and surviving spouses.
USDA loans
USDA loans are guaranteed by the U.S. Department of Agriculture and allow buyers to purchase a home with no down payment. People often choose this type of loan when they plan to buy in a rural area.
Non-Qualified mortgages
Non-QM loans help borrowers who cannot document income through standard methods. These programs work well for self-employed buyers, investors, or borrowers with significant assets.
Why do credit scores matter when buying a home?
Credit scores matter because they influence your loan options, odds of approval, and your mortgage rates. With a 600 score, lenders see more risk, so they may offer you higher interest rates and closing cost fees.
- Mortgage approval: Mortgage lenders use your credit score to assess the risk of lending to you. A higher credit score generally indicates lower risk, making it easier to qualify for a mortgage loan and potentially get preapproved.
- Mortgage interest rates: Your credit score directly affects the interest rates you’ll pay on your mortgage loan. A higher credit score typically results in lower interest rates, which can save you thousands of dollars over the life of the loan.
- Loan types: Different types of mortgages have varying minimum credit score requirements. Your 600 credit score limits the types of loans available to you, potentially excluding you from a conventional mortgage.
FICO score ranges
The FICO score typically ranges from 300 to 850, with higher scores representing better creditworthiness.
- Excellent: 800 to 850
- Very good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: 300 to 579
What affects your credit score?
A credit score is a three-digit number that lenders use to assess your creditworthiness and the risk of lending you money. It’s calculated from information in your credit report, which is monitored by three credit bureaus: Experian, Equifax, and TransUnion.
- Payment history (35%): Timely payments on credit cards, loans, and other debts.
- Credit utilization ratio (30%): The amount of credit you’re using compared to your credit limits.
- Length of credit history (15%): How long you’ve had credit accounts open.
- Credit mix (10%): The variety of credit types you have (e.g., credit cards, personal loans, mortgages).
- New credit (10%): Recent credit applications and opening new accounts.
How a 600 credit score affects your mortgage rate
Do you find yourself asking, “Can I buy a house with a 600 credit score?” The answer is yes, but a score in this range can raise the mortgage rate a lender offers. Lenders view a 600 score as a higher-risk profile, so they often respond with higher rates that increase the monthly payment and the total interest paid over the life of the loan.
When buying a house with a 600 credit score, lenders may also add loan-level price adjustments, which are risk-based fees built into the rate. These adjustments are common for borrowers with low credit scores or small down payments. Here’s a look at how higher rates affect the total interest paid on a $400,000 loan with a 30-year fixed rate.
Review your 600 credit score mortgage loan options. Start here| Interest Rate | Mortgage Payment | Total Interest Paid |
| 6.75% | $2,594.39 | $533,981 |
| 7.0% | $2,661.20 | $558,036 |
| 7.25% | $2,728.71 | $582,334 |
| 7.5% | $2,796.86 | $606,869 |
Calculations are approximations and do not include property taxes, homeowners insurance, or other fees.
“Ask your loan officer if they have any ideas around increasing your credit score; they may be able to help you quickly boost your scores to help you get a better rate.”— Jon Meyer, loan expert
How to improve your credit score
If you’re asking yourself, “Can I buy a house with a 600 credit score?” the answer depends on several factors, but improving your credit can make homeownership more achievable. Taking small but strategic steps now can boost your score and open up better mortgage opportunities.
Check your loan options. Start hereHere are some quick tips:
- Pay bills on time. Late payments hurt your credit score, so prioritize paying your credit cards and loans on time to avoid major impacts.
- Reduce debt. Keeping credit card balances below 30% of your limit improves your score; paying off debt entirely is even better.
- Fix errors. Check your credit report regularly for mistakes and dispute any inaccuracies to prevent score reductions.
- Get a credit-builder loan. Offered by banks and credit unions, these loans help establish a positive payment history.
- Become an authorized user. A family member’s good credit habits can reflect positively on your credit report.
- Keep accounts open. The length of your credit history matters, so maintain older credit lines, even if used infrequently.
- Limit credit applications. Too many inquiries can lower your score and impact your mortgage eligibility.
- Consider rapid rescoring. Your lender can quickly update your credit to reflect recent payments or corrections to errors.
Mortgage loan options for 620 credit scores
Curious about the type of home loan you can get with a good credit score? Let’s take a closer look at some popular loan options available for borrowers with credit scores of 620 and above.
Check your conventional loan options with multiple lenders. Start here
FAQs about 600 credit score home loans
Check your loan options. Start hereA 600 credit score is considered fair rather than good. You may still qualify for some mortgage options, but you might face higher interest rates or stricter loan terms than borrowers with stronger scores.
Yes, you can buy a house with a 600 credit score, often with an FHA loan, which only requires a 580 FICO score. Several other 600 credit score home loans accept this range if your income, debt-to-income ratio, and recent credit history demonstrate you can afford a monthly mortgage payment.
Yes, you can get a mortgage loan with a 600 credit score, particularly with government-backed loans like FHA loans, which may allow approval with scores as low as 500. While a 600 score is below the 620 minimum for most conventional mortgages, FHA, VA, and USDA loans offer more flexibility for borrowers with lower scores.
Yes, you can get an FHA loan with a 600 credit score because FHA rules start at 580 for the 3.5% down payment tier. Borrowers with scores between 500 and 579 must provide a 10% down payment. Because a 600 score falls within the 580+ range, many buyers are eligible if they meet income and property requirements.
A credit score of at least 620 is generally needed for a conventional loan to buy a $300k house, though some lenders may require higher scores. For government-backed loans, such as an FHA loan, a minimum score of 580 may be sufficient for a 3.5% down payment, while lower scores may require a higher down payment.
Ready to find a 600 credit score mortgage?
If you’re ready to explore a mortgage with a 600 credit score, the next step is to speak with a lender. You can compare programs and determine your budget. A quick preapproval can show you how close you are to buying a home. Use the links below to begin the process.
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