Can You Buy a Home With a 600 Credit Score?
A 600 credit score puts you squarely in the "fair" credit range — and while it's not ideal for getting the best mortgage rate, it doesn't mean you can't buy a home. With the right loan program and some preparation, homeownership is within reach.
Here's what first-time buyers with a 600 credit score need to know.
What Loan Options Are Available?
FHA Loans: The Most Accessible Option
FHA loans are insured by the Federal Housing Administration and designed specifically for buyers with less-than-perfect credit. Here are the requirements:
- 580+ credit score: You can put down as little as 3.5% of the purchase price
- 500–579 credit score: You'll need at least a 10% down payment
- Debt-to-income ratio: Typically under 43%
With a 600 score, you'd qualify for the 3.5% down option. On a $250,000 home, that's $8,750 down — far more manageable than the 20% some people assume is required.
The catch: FHA loans require you to pay mortgage insurance premiums (MIP) both upfront and annually. This adds to your monthly payment.
Conventional Loans Are Harder
Conventional loans (not backed by the government) typically require a minimum credit score of 620–640, and that's at the low end. With a 600 score, you'd likely be declined by most conventional lenders — or face very high interest rates if approved.
VA and USDA Loans
If you're a military service member or veteran, VA loans have no official minimum credit score and can require no down payment. Many VA lenders do set their own minimum of around 580–620.
If you're buying in a rural area and meet income limits, USDA loans can also help with little to no down payment, with lender minimums typically around 580–640.
The Real Cost: Interest Rates
Even if you qualify for a mortgage with a 600 credit score, you'll pay more in interest than someone with a 740+ score. On a 30-year $250,000 mortgage, the difference between a 6.5% rate (fair credit) and a 5.5% rate (good credit) is roughly $170 more per month — or over $61,000 more over the life of the loan.
This is why many financial advisors suggest spending 6–12 months improving your credit before applying if you're in the fair range.
How to Improve Your Score Before Buying
A few months of targeted effort can meaningfully boost your score:
- Pay down credit card balances to reduce your credit utilization below 30%
- Dispute any errors on your credit report at all three bureaus
- Don't open new accounts or apply for new credit in the months before your mortgage application — hard inquiries and new accounts hurt your score temporarily
- Keep existing accounts open to maintain your average account age
Even moving from 600 to 640 can mean meaningfully better loan terms.
First-Time Buyer Programs That Can Help
Beyond loan types, many states offer first-time homebuyer programs with down payment assistance, closing cost grants, and reduced interest rates. These are often specifically designed for buyers with moderate incomes or lower credit scores. Check your state's housing finance agency website for available programs.
The Bottom Line
A 600 credit score doesn't disqualify you from buying a home. FHA loans offer a realistic path, especially with a 3.5% down payment. But you will pay more in interest than buyers with stronger scores — so if you can spend a few months improving your credit first, it's often worth it.
Your credit score is a starting point, not a final answer. With patience and the right strategy, homeownership is achievable.
Working on building stronger credit before your home purchase? Explore Firstcard's credit-building tools.
Frequently Asked Questions
Can I get a mortgage with a 600 credit score? Yes. FHA loans are available with scores as low as 500 (with 10% down) or 580 (with 3.5% down). USDA and VA loans also have flexible requirements. Conventional loans typically require 620+.
What type of mortgage is best for a 600 credit score? An FHA loan is usually the best option at 600. It offers low down payment requirements and more lenient credit standards than conventional loans. VA loans are also excellent if you qualify based on military service.
How much down payment do I need with a 600 credit score? With an FHA loan and a score between 580–619, you typically need at least 3.5% down. If your score is below 580, you'll need 10% down. Some programs have down payment assistance available.
Will a 600 credit score get me a higher interest rate? Yes. Borrowers with scores below 620 typically pay higher interest rates than those with scores of 740+. Even a 0.5–1% rate difference can cost thousands over the life of a loan.
How can I improve my credit score before applying for a mortgage? Pay down credit card balances, avoid new credit applications, pay all bills on time, and dispute any errors on your credit report. Even raising your score 20–40 points can significantly improve your rate and loan options.
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