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A credit score of 600 may not get you a conventional mortgage, but that doesn’t mean you’re out of options. Read on to learn more. 

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Credit scores range from 300 to 850, and Experian says a credit score of 600 is considered fair. Specifically, it puts a score of 580 to 669 in that category.

But while a credit score of 600 may be fair, it’s also not high enough to allow you to qualify for a conventional mortgage. It takes a minimum credit score of 620 to be able to snag one of those loans. And so if you apply with a score of 600, a mortgage lender is likely to reject your application. But that doesn’t mean you don’t have other options.

There are different mortgage programs you can explore

When it comes to financing a home purchase, a conventional mortgage is not the only way to go. And if your credit score is 600, it means you may be in good shape to qualify for other loan types.

One option you may want to consider is an FHA loan. These loans require a minimum credit score of 500, so if your score is 600, it means you may be eligible.

That said, if your credit score is between 500 and 579, you’ll need to make a 10% down payment on an FHA loan. But if your score is at least 580, you can get away with putting down as little as 3.5% of your home’s purchase price. By contrast, with a conventional mortgage, you may have to put down 5% at closing or even more, depending on your lender’s requirements.

Another borrowing option you may be able to pursue with a credit score of 600 is a VA loan. This option will only be on the table if you are or were a member of the U.S. military, or if you were married to a veteran.

There are no credit score requirements for VA loans, so technically, you might be able to qualify with a score that’s much lower than 600 (though that will ultimately depend on your lender). And VA loans also offer the benefit of not requiring a down payment.

Ways to bring your credit score up

Having a credit score of 600 won’t automatically mean that you can’t qualify to borrow for a home. But raising your credit score could work to your benefit. And you can give your credit score a nice boost by paying all of your upcoming bills on time and whittling down a chunk of existing credit card debt if you can afford to do so.

Something else that might help your credit score improve? Check your credit report for errors. If you spot a mistake that’s harmful to your credit history, getting it removed by contacting the credit bureaus could result in a higher score.

Remember, the higher your credit score, the more likely you are to not only get approved for a home loan, but snag a more competitive mortgage rate. So even though you can borrow for a home with a credit score of 600, you may be able to do so in a far more affordable manner if you manage to bring your score up.

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