Having a high credit score has plenty of perks. Higher credit limits and lower interest rates for loans and credit cards are among the many reasons people try to improve their credit. But what if your score is on the lower end of the spectrum? A 600 credit score is less than ideal, but will it shut you out of the housing market entirely? Let’s explore whether you can buy a house with that score and what loan options may be available.
Can I buy a house with a 600 credit score?
To answer the question, yes, you can buy a house with a 600 credit score. Lenders don’t just look at your credit; they also consider your income, employment history, debt-to-income ratio, and your ability to make consistent mortgage payments. If you can provide evidence of a steady source of income and can demonstrate that you can afford to make regular mortgage payments, you have a chance of getting approved.
The key is finding a loan program that you qualify for and that fits your needs. With the right preparation and loan type, homeownership is still within reach.
What credit score do I need to buy a house?
The credit score you need to qualify for a home loan will depend largely on the loan program itself. Each loan type has its own set of requirements and thresholds you have to meet in order to qualify. In the table below, we’ll break down some of the most common types of loans and the credit scores you’ll need to qualify.
| Loan type | Minimum credit score |
| Conventional | 620 |
| FHA loan | 500 (with 10% down) or 580 (with 3.5% down) |
| VA loan | No official minimum (most lenders prefer 620) |
| USDA loan | No official minimum (typically 620+) |
FHA loans
FHA loans are one of the most popular options for buyers with lower credit scores. To qualify, you’ll need a score of at least 580 with a 3.5% down payment, or as low as 500 if you can put down 10% or more.This loan type is also intended for first-time homebuyers.
VA loans
If you’re looking to get a VA loan, you must…