Yes…quite possibly! The title of this post is a question that was entered as a search that found Mortgage Porter. Someone could buy a $400,000 home with a 600 credit score if:
FHA Scenario Possibility
- No late payments or derogatory credit in the past 12 months. FHA insured loans do not use credit scores.
- Base loan amount at FHA loan limit (assuming King, Snohomish or Pierce Counties): $362,790.
- Just shy of 10% down or a minimum of 3% down plus closing costs with a 6% seller contribution.
With conforming, if the other qualifying factors (income, assets, employment, down payment) are strong, the borrower may still qualify for a mortgage.
At the very least, if your credit score is 600 and you’re considering buying a home, I suggest contacting a Mortgage Professional to have your personal scenario reviewed. The higher your credit score, the better your rate may be for a mortgage and a qualified Mortgage Professional should be able to advise you on how to improve your credit rating.