home loans for credit under 600: a beginner’s roadmap to buying

What a sub-600 score means

A credit score below 600 signals higher risk to lenders, but it does not shut the door on a mortgage. Expect tighter scrutiny, larger down payments, and potentially higher rates. The key is matching your profile to the right program and preparing documents early.

Possible loan paths

Government-backed options

FHA loans may accept scores in this range with compensating factors, such as steady income and verified savings. VA loans can be flexible for eligible borrowers, and some USDA programs serve rural buyers with low to moderate income.

• Show stable employment and low recent delinquencies
• Target a debt-to-income ratio under 43%
• Aim for 10% down if your score is closer to 580

How to strengthen your file

Pay down revolving balances to below 30% utilization, dispute clear errors, and avoid new credit inquiries before applying. A rapid rescore can reflect updates faster.

Next steps

Compare at least three lenders, request a detailed Loan Estimate, and negotiate fees. With patience and documentation, home loans for credit under 600 are achievable without overpaying for a decade.