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Is it possible to get a mortgage with a credit score under 600?

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Oleg_K
Joined:
21.09.2020
Posts: 426
Topic Starter
11.01.2025 11:41
My partner and I have been renting for years and are desperate to finally buy our own place, but our credit scores took a massive hit during the pandemic. We've been working hard to pay down our debts, but the scores are hovering right around 580 to 590 at the moment. We have a decent down payment saved up, but I'm worried that no lender will even look at our application. Has anyone here successfully navigated this process with a low score, or should we just keep waiting and fixing our credit for another year?
14 replies in this topic
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Yani_Z
Joined:
01.03.2024
Posts: 1509
18.01.2025 10:47
It is definitely possible, but it won't be with a traditional bank. Look into FHA loans, they are much more lenient with credit scores.
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regular_user
Joined:
26.09.2019
Posts: 332
14.02.2025 13:02
In reply to a previous post
I was in your shoes last year. My score was 575 and I got approved for an FHA loan. The interest rate wasn't great, but it got me into the house.
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Chris_K
Joined:
27.08.2021
Posts: 1820
17.03.2025 14:09
In reply to a previous post
Don't let people tell you it's impossible. Just be prepared for a higher down payment requirement and potentially higher mortgage insurance premiums.
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Selector
Joined:
03.09.2023
Posts: 547
10.04.2025 12:14
Honestly, I'd suggest waiting another year if you can. Your interest rate is going to be brutal at that score, and you'll end up paying way more in the long run.
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Amelie_Z
Joined:
12.06.2022
Posts: 225
27.05.2025 05:37
In reply to a previous post
I agree with the person who said to wait. If you can boost your score by even 50 points, it could save you hundreds of dollars a month on your payment.
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Yana_P
Joined:
24.12.2024
Posts: 1482
27.05.2025 17:05
Have you looked into local credit unions? They are often way more willing to look at your personal situation rather than just a computer-generated score.
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mike_777
Joined:
31.12.2021
Posts: 1589
15.06.2025 09:27
In reply to a previous post
That is a great point about credit unions. Big banks just have an automated system that will reject you instantly if you hit under 600.
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regular_user
Joined:
21.12.2020
Posts: 1125
01.07.2025 11:11
Are you working with a mortgage broker? A good broker knows which lenders specialize in 'non-prime' borrowers and can help you navigate the paperwork.
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cris_r
Joined:
12.12.2021
Posts: 83
24.07.2025 12:56
In reply to a previous post
Exactly, a broker is key here. They found me a lender who looked at my solid employment history rather than just the credit hit I took during COVID.
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jacek_pl
Joined:
25.08.2020
Posts: 1490
18.10.2025 04:00
Just be careful with predatory lenders. If someone promises you a mortgage with no questions asked, read the fine print very carefully.
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BlackCat
Joined:
10.07.2022
Posts: 517
26.10.2025 14:10
Make sure you have your documentation in order. If you can prove the credit hit was a one-time thing due to the pandemic, some underwriters might be more sympathetic.
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Kevin_M
Joined:
30.01.2021
Posts: 855
27.10.2025 04:16
In reply to a previous post
I second that. Write a letter of explanation for your file. It sounds simple, but it can actually make a difference with some loan officers.
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deleted_user
Joined:
23.12.2024
Posts: 2325
06.11.2025 10:59
Good luck! It is a stressful process but it feels amazing once you finally get those keys.
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Alan_K
Joined:
01.12.2023
Posts: 571
03.04.2026 10:16
In reply to a previous post
Don't give up! My credit was 595 and I just closed last month. It is hard, but it can be done.

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