The higher your credit score, the more likely you are to get approved for a home loan. But that doesn't mean qualifying with a lower score is impossible. Here, we'll show you how to get a mortgage with low credit.
Is it possible to get a mortgage with bad or poor credit?
Before we talk about how to get a mortgage with poor credit, let's review what that actually means. Credit scores range from a low of 300 to a perfect score of 850. Within that range, here's how FICO (the most popular scoring model) classifies different scores:
CREDIT SCORE RANGE |
CLASSIFICATION OF SCORE |
800 or above |
Exceptional |
740 to 799 |
Very good |
670 to 739 |
Good |
580 to 669 |
Fair |
Under 580 |
Poor |
Data source: myFICO.
Can I get approved for a mortgage loan with a bad credit score?
If you're wondering, "What credit score do I need to qualify for a mortgage?" you generally need a score of 620 or higher for a conventional mortgage.
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