Can you get a home loan with a credit score of 600? Yes you can, although a credit score of 600 usually falls into the “poor” credit category. With a FICO score of 600, your primary option for a home mortgage will be an FHA mortgage. The FHA mortgage program is designed to open home ownership opportunities to people who couldn’t qualify to buy homes before the program began in the 1930s.
What is a FICO score and what can it mean?
FICO stands for “Fair Isaac Corporation,” the first company to offer a credit score that evaluated the risk of lending to a person. The FICO credit score scale goes from 300 (worst) to 850 best. A credit score of 600 is low, but it isn’t the worst. The worst, “very poor” credit score range goes from 300 to 599. About 19% of people are in the “very poor” range. If you’ve got a credit score of 600, you’re a little bit above that level, along with about 10% of U.S. consumers. Credit scores aren’t 100% accurate in determining whether you’ll repay your mortgage, but lenders use them to determine your loan eligibility.
What kind of mortgage can you get with a credit score of 600?
Your primary option for a 30-year fixed rate mortgage or a 15-year fixed rate mortgage in California with a credit score of 600 is an FHA home loan. FHA loans have limits depending on the county where you want to buy a home. FHA loan limits can go up to $726,525 in higher-cost counties. If you’re a veteran, you may also be eligible for a VA home mortgage with a credit score of 600. There aren’t any official requirements for a credit score with a VA home loan.
Most of all, you shouldn’t rule yourself out of buying a home with a credit score of 600. You could be eligible for a conventional home mortgage in addition to an FHA or VA mortgage.
If you want to get the best interest rate or buy a home that’s more expensive than the FHA county loan limits, you’ll probably need to improve your credit score. A qualified mortgage specialist with experience can tell you what your options are and give you tips to increase your credit score. They can help you get the mortgage you need with a FICO score of 600 or higher.
Sources
https://thelendersnetwork.com/mortgage-with-600-credit-score/
