600 Credit Score Mortgage Options

Many prospective home buyers assume that your credit must be in the high 600’s or 700’s 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 a 500.

Please keep in mind that with a 600 credit score, you are just 20 points shy of meeting the minimum credit score requirements for a conventional loan.  It may be worth waiting to apply for a mortgage until your credit is above a 620 score, since better options may be available to you then.

If you are eager to get a mortgage, there are some home loan programs that are available to borrowers with a 600 credit score.

FHA Loan with 600 Credit Score

The most common type of loan available to borrowers with a 600 credit score is an FHA loan.  FHA loans only require that you have a 580 credit score, so with a 600 FICO, you will definitely meet the credit score requirements.  

Other FHA loan requirements are that you have at least 2 years of employment, which you will be required to provide 2 years of tax returns, and your 2 most recent pay stubs.  The maximum debt-to-income ratio is 43% (unless you have satisfactory “compensating factors”, such as a higher down payment, or cash reserves).

Something that attracts many borrowers to FHA loans is that the down payment requirement is only 3.5%, and this money can be borrowed, gifted, or provided through a down payment assistance program.

Click here to find out if you qualify for an FHA loan.

FHA Lenders for 600 Credit Score

Below are some of the best FHA lenders that offer FHA loans to borrowers with a 600 credit score:

1.) Quicken Loans

2.) New American Funding

3.) Loan Depot

4.) Carrington Mortgage

5.) Guaranteed Rate

Please note:  We are not affiliated with all mortgage lenders that are featured on our website.  We choose to include those who we consider to be the best lenders for various programs and scenarios.  If you would like some help getting connected with a mortgage lender that may be able to help you, please fill out this form.

Non-QM Loans for 600 Credit Score

There are also some other unique loan products, which are known as non-qm loans, that are available to borrowers with a 600 credit score.  These programs are intended for people who are unable to qualify for a traditional mortgage, such as a conventional or FHA loan.

It is recommended that you first see if you can qualify for a conventional or FHA loan, since non-qm loans usually have higher interest rates. They also require larger down payments.

Non-QM Lenders for 600 Credit Score

Below are some of the best non-qm mortgage lenders:

1.) Citadel Servicing

2.) First National Bank of America

3.) Northstar Funding

4.) Angel Oak Mortgage

5.) Athas Capital

What may be in your best interest is to speak with a mortgage broker that offers conventional, FHA, and non-qm loans, and they can help you learn of what options may exist for you. If you would like to be connected with a mortgage broker that can help you compare your options, please click here.

Frequently Asked Questions

What if I have had a major credit issue in recent years?
If you have had a bankruptcy, foreclosure, or short sale, there are several non-prime lenders that offer options even just 1 day out of your credit event. Expect to be required to put a much higher down payment down if you are within 2 years of most major credit events, such as those listed above.

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 alternative bills that are often allowed (phone bills, utilities, etc.).

What are the interest rates for a borrower with a 600 credit score?
The interest rate will depend on your individual qualifications, the mortgage lender, and the date you lock your interest rate. We can help you compare interest rates from mortgage lenders.

Is down payment assistance available to someone with a low credit score?
Yes, in fact many down payment assistance programs are available to people with very low credit scores. The types of programs range from local (city, county, or state level), or nationwide programs. We can help you see if you qualify for down payment assistance. If you have lower income, you are even more likely to qualify, as most programs are geared for lower income households.