Best Mortgage Lenders for a 600 Credit Score, According to Real Estate Experts

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These are some of the top mortgage lenders for consumers with 600 credit scores.

Most mortgage lenders require a 620 credit score to apply, and some only work with consumers who have 680 FICO scores. However, a few mortgage lenders open their doors to applicants with lower credit scores. 

The real estate expert we spoke with details some options for people with 600 credit scores. You will also learn what to keep in mind when comparing mortgage lenders. 

Quick Winners List

• Best for New Home Buyers: New American Funding
• Best for Seeing Current Rates: Guaranteed Rate
• Best for Home Equity Agreements: Unlock
• Best for Comparing Lenders: Credible Mortgage
• Best for Term Flexibility: SoFi

Best for New Home Buyers: New American Funding

Pros: 

• Up to $7,500 in assistance for down payments, closing costs or other upfront expenses
• Down payments as low as 3%
• Many loan options are available

Cons: 

• No online quotes
• Doesn’t disclose interest rates online

New American Funding offers up to $7,500 in assistance for first-time homebuyers, plus various loan options. FHA loans are best for people with credit scores below 600. However, building up your credit score will help you qualify for more options.

For instance, the mortgage lender offers interest-only mortgages with generous monthly payments for the first 5-10 years. You can also find other financial products like non-QM loans, mortgage refinances, self-employed loans, buydown loans and jumbo loans.

However, you must request a quote and fill in your information to see your interest rate. The interest rate range isn’t publicly available on the site.

Best for Seeing Current Rates: Guaranteed Rate

Pros: 

• Rates are listed online for each of their loans
• National average rate fluctuations are displayed on the site
• Personal loans and reverse mortgages are also available

Cons: 

• Phone support is not available on weekends
• No information about fees

Guaranteed Rate publicly displays interest rates for its mortgages, giving you an idea of what type of rate will end up on your loan. Furthermore, the company also displays historical data on changes to the national mortgage rate. You can access up to two years of data to reveal current mortgage rate trends.

You can also use Guaranteed Rate for personal loans and reverse mortgages (if you qualify) to borrow additional cash. The mortgage lender offers conventional mortgages, VA loans, FHA loans and jumbo loans. You can choose a 15-year or a 30-year term.

However, Guaranteed Rate does not have phone support on weekends. You can still contact them via email, but other lenders offer weekend support. You also won’t find information about the lender’s fees on the website.

Best for Home Equity Agreements: Unlock

Pros: 

• Tap into home equity without taking out a loan
• No monthly payments
• No impact on your credit score

Cons: 

• You cannot borrow more than $500,000
• Terms are capped at 10 years

Unlock offers home equity agreements that let you tap into home equity without making monthly payments. Instead of taking out a traditional loan, you give up a stake in your home. You can buy out Unlock anytime, but the company limits terms to 10 years.

After 10 years, you have to make a balloon payment on the borrowed amount plus appreciation. You can opt for a shorter term, but 10 years is the limit. The main perk of home equity agreements is that you don’t make any monthly payments, and accessing your equity won’t impact your credit score.

Best for Comparing Lenders: Credible Mortgage

Pros: 

• Compare rates and terms from several lenders
• Low-credit loans are available
• One-stop shop for various types of loans and financial products

Cons: 

• Rates may be higher
• Credible is not a direct lender

Credible is an online lending marketplace that connects borrowers with lenders. You can compare rates from various lenders and decide which has the best rate and terms. Some low-credit loans are available, making homeownership accessible even if you have a 600 credit score.

If you like your experience with Credible, you can also turn to them for personal loans, insurance policies and other financial products. However, Credible is not a direct lender. Your experience on the site will significantly vary from that of other customers since it depends on your chosen lender. 

Best for Term Flexibility: SoFi

Pros: 

• Choose from 10-year, 15-year, 20-year and 30-year terms.
• Down payment as low as 3% for first-time homebuyers
• SoFi closes mortgages faster than the industry average

Cons: 

• No physical branches
• No USDA loans

SoFi Mortgage is an online bank offering various financial products, including high-yield savings and brokerage accounts. The company’s home mortgages offer plenty of versatility, with terms ranging from 10-30 years. You can also make a down payment as low as 3% if you are a first-time homebuyer.

However, SoFi does not offer USDA loans and does not have physical branches. While the lack of retail locations may deter some people, the company has steadily attracted younger customers. SoFi has more than 10 million members, and faster closing times on mortgages are one of the many reasons why that’s the case.

What Kind of Score is a 600 Credit Score?

A 600 credit score is considered fair, but it can block you from conventional mortgages. It’s still enough to get financing if you know where to look. You’re just on the cusp of a 620 credit score, which gives you more mortgage options. Building your credit score before applying for a mortgage is a good idea if you have time.

What Mortgages Are Available for People with 600 Credit Scores?

While conventional mortgages aren’t available for people with 600 FICO scores, you can get creative. Adam Hamilton, the CEO and co-founder of REI Hub, shares some options aspiring homebuyers have.

“If you have a 600 credit score, your best option for a mortgage may be to go with a non-conventional option. Most conventional mortgages have a credit score minimum of about 620. Some government-backed loans, like FHA or VA loans, have lower limits or none at all.”

VA loans are very competitive, but you or your spouse need to have served in the military to qualify for one. They aren’t for everyone.

FHA loans are more accessible. You only need a 580 credit score to put down as little as 3.5%. You can still get an FHA loan with a 500 credit score but must make a minimum 10% down payment.

How to Choose a Mortgage Lender

Choosing a mortgage lender comes down to narrowing the list of viable choices. A 700 FICO score will give you more options than a 600 credit score. Once you find lenders who will give you a loan, you can narrow your list based on the following factors:

• Interest rates: Lenders with lower interest rates are typically the better options. The only exception is if a low-interest lender has excessive costs and fees.
• Terms and conditions: Can you secure a mortgage within the right years and under reasonable conditions? Compare each lender to see the most favorable “fine print.”
• Fees: Origination fees, administrative fees and closing costs add up. You should also check if a lender has prepayment penalties and how high they are.

Why You Should Trust Us

Benzinga has provided financial content on real estate for over 15 years while bringing on the top experts. I have written for Benzinga for five years and am a certified personal finance counselor (CPFC). I also contribute to other finance publications, such as U.S. News & World Report, Business Insider and Newsweek.

Methodology 

We compared mortgage lenders based on their credit score requirements, rates, financial products and other details. We also assessed lenders based on the perks they offer borrowers and the minimum down payment requirement.

FAQ

Sources

Hamilton, Adam. Personal interview with the author. 5 March 2025.