getting home loan with 600 credit score: what to expect

Can you qualify?

A 600 score won’t slam the door, but it narrows paths. Many borrowers succeed through FHA with 3.5% down, and VA or USDA can work if eligibility fits. Conventional lenders may allow it, yet overlays, lower limits, and higher pricing are common. Expect tighter DTI caps, proof of stable income, and explanation letters for recent credit bumps.

Ways to strengthen your file

• Increase the down payment to reduce risk and improve pricing.
• Pay down revolving balances below 30% utilization.
• Document reserves-two to three months of payments saved.
• Add a well-qualified co-borrower if appropriate.
• Shop multiple lenders and compare points, not just rate.

Rates may be higher; sometimes paying a small point yields a better lifetime cost. Ask for a loan estimate from each lender and negotiate lender credits for fees.

What to expect at closing

1. Conditional approval after underwriting review.
2. Appraisal and any repairs or re-inspection.
3. Clear to close with final verification of employment and assets.

Build in time for conditions, lock strategically, and keep credit activity quiet until keys are in hand.