48 Meriden Rd, Suite 1, Middlefield, CT 06455

Getting a Mortgage With Low Credit Scores

Homebuyers with low credit scores still have options

If you are ready to buy a home, but your credit score is not that great, you still have options.  People have low credit scores for many different reasons.  Maybe you haven’t built up your credit enough or maybe you have too much debt.  FICO credit scores range between 300 and 850 and there are many different factors that go into determining your credit score.  For anyone on the lower spectrum of that range, there is still hope for home ownership.  Below I will explain the different options those with low credit scores have for getting a mortgage.


FHA requires a minimum score of 500 or higher, although most lenders will not go that low so a score of 580 or higher will be more likely.


VA loans do not have a minimum credit score requirements unlike FHA, but there are eligibility requirements.

You must have….


  • Served 90 consecutive days of active duty during wartime,
  • Served 181 days of active duty during peacetime,
  • More than 6 years of service in the United States National Guard or Reserve
  • You are the spouse of a service member who has died in the line of duty or as a result of a related disability(s)
  • Then a VA loan may be a good option for you.


Most lenders will require a credit score of 620 or higher in order to get approved for a USDA loan, but some lenders will go as low as 580.  There are other benefits to applying for a USDA loan including 0% down payment for qualifying properties.


The home possible program is for those who have low to moderate credit scores of 620 or higher.  This program offers a low minimum down payment of 3% and reduced PMI rates.


These are some of the more attractive options for those of you with low to moderate credit scores that are looking into home ownership.

I am available to answer any of your questions about these programs and the pre-approval process.



IMG_1722lizElizabeth Welch NMLS 1618684
Company NMLS 117273
210 South Main Street
Middletown CT 06457