Low credit score Mortgages
Got you. A low-credit-score mortgage is possible — it just depends on how low, your income, and what kind of property you’re buying. Here’s the clean breakdown 👇
Minimum Credit Scores by Loan Type
🏡 FHA Loan
- 580+ → 3.5% down
- 500–579 → 10% down (harder but doable)
- Most forgiving option
- Higher mortgage insurance
🏦 Conventional Loan
- 620 minimum
- Better rates above 660–680
- Much stricter on credit history
🪖 VA Loan (if eligible)
- No official minimum
- Most lenders want 580–620
- No down payment
🌾 USDA Loan
- Typically 640+
- Rural areas only
- No down payment
If Your Score Is REALLY Low (500–580)
Options:
✔ FHA with 10% down
✔ Non-QM loans (bank-statement, DSCR, asset-based)
✔ Hard money / private lenders (higher rates, short term)
✔ Co-borrower or non-occupant co-signer
What Lenders Care About Besides Credit
Even with low credit, approvals happen if you have:
- 💰 Strong income or cash flow
- 🏦 Reserves in the bank
- 📉 Recent improvement in credit (last 12 months clean)
- 🏠 Larger down payment
- ❌ No recent bankruptcies/foreclosures (or enough time passed)
Fast Credit Improvement Tips (30–90 Days)
These actually work:
- Pay credit cards below 30% utilization (ideally under 10%)
- Don’t open new accounts
- Remove collections under $500 (some FHA lenders ignore them)
- Add a rapid rescore (lenders can do this)
Bottom Line
👉 580–620 score → FHA or Non-QM
👉 Below 580 → Private / Non-QM / Bigger down
👉 Luxury or investment property → Non-QM or private lenders
If you want, tell me:
- Your approx credit score
- Purchase price
- Primary home or investment
- State
I’ll point you to the best loan program and lender path for your situation.
