600 credit score home loan options and smart first steps

What a 600 score means

A 600 credit score sits near the edge of subprime, but it can still unlock a home loan with careful preparation. Lenders weigh more than the number: income stability, debt-to-income ratio, and cash reserves can tip a borderline file into approval.

Key considerations before applying

Focus on affordability. A slightly higher rate or mortgage insurance is common at this tier, so model payments with taxes and insurance included. Reduce revolving balances to improve utilization, and document any recent credit hiccups with clear explanations.

• Target a DTI under 43% and steady employment
• Save for closing costs and a larger down payment to offset risk
• Check FHA, VA, or non-QM programs that accept 600 scores
• Dispute only true errors; avoid new inquiries before underwriting

How to get started

Pull tri-merge reports, compare pre-approvals from at least three lenders, and ask for a loan estimate on the same day for apples-to-apples APRs. Lock only after reviewing fees, and keep funds seasoned in your accounts for sourcing. Small tweaks now can lower costs for years.