620 Credit Score Mortgage Options
There are many opportunities to qualify for a mortgage with credit scores of 620 or higher. Today’s lending guidelines will allow you to apply for, and weight your options against most mortgage programs.
Your credit score plays a significant role in your ability to qualify for a mortgage. The scores also will determine whether there is a lender who can help and also what your rate will be.
You should be able to qualify for a conventional loan, FHA, USDA and also VA if you are a military veteran. If you are self employed, you may also qualify for some of the unique mortgage programs without tax returns.
Although you have these options available, not every lender is willing to help with credit scores of 620-659. Lenders have the ability to raise their standards. We can help you regardless of what your credit scores are. To discuss these options, please complete this short form and someone will contact you.
620-659 Credit Score Mortgage Programs
Below are some loan options for individuals with a 620-659 credit score. Some of these programs have unique requirements which must be met regardless of what your credit scores are.
FHA Loan Requirements With a 620 Credit Score
FHA loans are a popular mortgage program for people who are looking for a low down payment, or are trying to qualify to purchase a more expensive home.
- FHA mortgage guidelines require you to document your income.
- Mortgage insurance is mandatory for every FHA loan regardless of how much you put down.
- All borrowers must have a two year history of full time employment. It can be a W2 job or self employed work.
- The down payment requirement is 3.5% of the purchase price.
Conventional Loan Requirements With a 620 Credit Score
Conventional loans are the most popular mortgage in the US for people who have a down payment of more than 10%
- You must have a minimum credit score of 620.
- Minimum down payment of 5%.
- PMI will be required if the down payment is less than 20%.
- All property types (1-4 Units) permitted
- You must have a two year work history of full time employment. Small gaps in employment are permitted.
- No recent credit events are permitted (bankruptcies, foreclosures, or short sales).
VA Loan Requirements With a 620 Credit Score
VA Loans are for active military, veterans, or spouses of veterans who have VA eligibility.
- VA loans have no down payment requirement
- You must have VA loan eligibility
- The VA funding fee is required on every mortgage
- You must fully document your income and assets
- You can qualify with a 620-659 credit score, it is also possible to have scores much lower than that and still qualify.
USDA Loan Requirements with a 620 Credit Score
USDA loans are for individuals who are looking to purchase a home in a rural area.
- You must fully document your income and assets by providing pay stubs, bank statements, W2s and tax returns.
- No down payment is required for USDA loans.
- Credit scores of 640-659 is acceptable for a USDA loan.
- The home must be in a USDA eligible location which can be found by reading the USDA mortgage guidelines.
- The home cannot be a working farm or be used for business purposes.
If you have credit scores of 620-659 and are looking to qualify for a mortgage, then click here to get connected with us for a free consultation with no credit pull.
620-659 Credit Score Mortgage Lenders
With credit scores of 620-659, you should not have a problem finding a lender who can help with your mortgage. However, many lenders have credit score minimums that are much higher.
Something else to consider is not all lenders offer all of the mortgage program options. Some lenders do not offer VA loans for example. Others do not offer mortgages for self employed people. Most lenders do not offer FHA 203k rehab loans either.
Our mortgage lender network will enable you to speak with someone who can offer anything that you may need.
Frequently Asked Questions – 620 Credit Score Mortgage Lenders
Q: Can I get a mortgage with a 620 credit score?
A: Having a credit score of at least 620 opens up many mortgage options for you.
Q: How good is a 620 credit score?
A: A 620 credit score is considered to be “fair” but you can still find a lender who can help with your mortgage.
Q: What are the interest rates when you have a 620 credit score?
A: The interest rates with a 620 credit score are going to be “fair” because that is exactly what your credit score is. Lenders adjust their interest rates based upon the credit scores of the borrowers. Therefore, the higher the credit scores, the lower the interest rates will be.
Q: What is the minimum credit score needed to get a loan?
A: There are a handful of lenders who can help with credit scores all the way down to 500.
Q: Can I Get a Conventional Loan with a 620 Credit Score?
A: The minimum credit score for a conventional loan is 620 which means you should do everything in your power to continue to raise your scores. If you are close to a 620, then a good loan officer can help you to raise them so you can qualify for a conventional loan.