Ready to buy a home, but not sure your credit can get you in the door? Homebuyers with bad credit can get a mortgage, but don’t expect plentiful options or the lowest published interest rates.
If you’re ready to buy, consider getting your mortgage locked in now before interest rates and home prices rise, even if your credit isn’t great.
What Is a Bad Credit Score for a Mortgage?
When it comes to mortgages, any score under 620 requires special handling. Even though a 620 credit score is considered fair credit, a score below this level is too low for a conventional mortgage. You’ll likely need to use a government-backed loan program that can accommodate low credit scores.
“Below 620, mortgage brokers have to become 50% magician, 50% broker to make you a bankable borrower,” says credit expert John Ulzheimer, who formerly worked for Equifax and FICO.