Can You Get a Mortgage with a 520 Credit Score?

Many prospective home buyers assume that your credit must be in the 600s or 700s to get a mortgage.  This is certainly not the case, as many mortgage lenders will provide home loans to borrowers with credit scores as low as 500. If you have a 520 credit score, the following loan options may be available to you.

FHA Loans for Borrowers with a 520 Credit Score

The most common type of loan available to borrowers with a 520 credit score is an FHA loan.  Keep in mind, that in order to qualify for a 3.5% down payment, you must have at least a 580 credit score. For borrowers with a credit score between 500-579, you may still qualify for an FHA loan, but will be required to put 10% down. Below are some of the best FHA lenders for the 500-579 credit score range:

1.) Northstar Funding

2.) Carrington Mortgage Services

3.) New Rez Wholesale

4.) Angel Oak Mortgage

These lenders offer an opportunity to potentially get an FHA loan with a 520 credit score (or anyone in the 500-579 credit range). If you would like some assistance finding an FHA lender, we can help match you with a lender that offers FHA loans in your location.

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Non-Prime Loans for Borrowers with a 520 Credit Score

In addition to FHA loans, there are also what are known as non-prime loans / non-qm loans. These are loan products that are offered by alternative mortgage lenders that provide financing to borrowers with bad credit, and that face other challenges qualify for conventional and FHA loans.  These lenders provide home loans to borrowers with credit scores as low as 500. You can learn more about some of these lenders below.

1.) Citadel Servicing

2.) Athas Capital

3.) ACC Mortgage

4.) First National Bank of America

Would you like some assistance finding a mortgage lender that might be able to help you?  We can help match you with a mortgage lender that helps borrowers with credit scores as low as 500.

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Frequently Asked Questions

Can I get a conventional loan with a 520 credit score?

No, the minimum credit score required for a conventional loan is a 620.  

Can I get a USDA loan with a 520 credit score?

No, the minimum credit score required for an automated approval for USDA loan is a 640.  Sometimes credit scores below a 640 are approved, but it will require a manual approval.

Can I get a VA loan with a 520 credit score?

Yes, if you are eligible for a VA loan, you may be able to qualify with a 520 credit score.

Can I get a jumbo loan with a 520 credit score?

Technically, there isn’t a minimum credit score requirement for jumbo loans.  Most jumbo mortgage lenders require a borrower to have a credit score of at least 680.  However, there are some non-prime jumbo lenders that go down to 580.  

What if I have had a major credit event recently?

If you have had a recent bankruptcy, foreclosure, or short sale, you may be eligible to get a mortgage.  There are several non-prime lenders that offer loan options to borrowers even just 1 day after such events. 

Are there other credit requirements that I should know about?

Most mortgage lenders require that you have 3 trade-lines on your credit report. This can be auto loans, credit cards, personal loans, or other qualifying lines of credit. There can be exceptions to this rule, including non-traditional sources of credit, such as phone bills, utilities, gym memberships, etc.

How can I find out if I qualify for a mortgage?

It is easy to find out if you qualify for a mortgage.  We can help match you with a mortgage lender that helps borrowers with a 520 credit score.  They can assist you in determining your eligibility for a mortgage.  To have a mortgage lender contact you, please fill out this form.