Kendall Morris, Credit Cards Moderator
You should be able to get a home loan even if your credit score is in the 500s, but then you're in the market for subprime loans only.
Subprime loans have interest rates that are a couple of percentage points higher than those offered to prime borrowers. Subprime loans also often come with additional fees.
Obviously, a better credit score grants you access to lower interest rates and better terms.
Kathryn B. Hauer, CERTIFIED FINANCIAL PLANNER (TM)
Hi! Thanks for writing. The higher your credit score, the lower your interest rate. Usually, a credit score in the low to mid 700's or above gets the best rates. However, depending on your circumstances, you could qualify for a regular mortgage with a credit score in the 600’s. Also, if you qualify for an FHA loan, you could have a score in the 500’s. Here is more info about FHA loans: https://www.fha.com/fha_credit_requirements. If you are turned down at one lender, it’s worth it to try another. Best wishes to you, and I hope you can get a house if you are looking to do that!
Dmitriy Fomichenko, President, Sense Financial
You should start shopping, at 720 credit score you'll get some of the best rates.
Dave Skow, Sr Loan Officer
Most lenders use a 620 score as a threshold ..there are programs for borrowers with lower scores
Jim Jonz, Member
You can qualify for an FHA at a score of 620. And even less – 570 with a qualifying VA loan.
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