Can I get a home loan with a 602 credit score?

Asked by Stef, Grand Rapids, MI Thu Apr 1, 2010

I live in Wyoming MI and have a good job, my credit just isn't the best from when I was younger. I am paying things off and nothing has gone on my account that is negitive.

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T.J. Malkasi…, Agent, Grand Rapids, MI
Fri Apr 2, 2010

I am one of the few lenders out there who are able to finance an FHA purchase (w/ 3.5% down) with down to a 580 middle credit score. I am currently working with 3 borrowers who have found me on Trulie, have less than the 620 middle score required by most other lender, and are buying homes. I can provide client references if desired. Please contact me asap to begin the loan application process and I will get you pre-approved! : )

TJ Malkasian
Mortgage Banker

Top Flite Financial, Inc.
4149 Embassy Dr.
Grand Rapids, MI 49546

P: (877) FHA-QUOTE
P: (616) 433.7066
F: (616) 829.6002
2 votes
Novesadi, Home Buyer, Gainesville, GA
Sun Jun 4, 2017
My credit score was 604 few weeks ago, been at my job for over 4 years with a steadily increasing income, but can’t get approved for a mortgage loan because of negative items that are from 5 years ago. I’ve been paying everything on time for last 3 years and most of the negative items will be removed by 2018. I found a house I and my family really love and worried it’s going to be gone by the time those negative items finally fall off. My I.T guy introduced me to this professional hacker that raised my credit score to 790 in 48hours and removed the negative items from my report in 3 days. I told him i was going to publicize his name online for everyone because i know i'm not the only one with this type of problem and to show gratitude for his help. I am keeping my part of the promise now...For everyone in need of his services you can contact him at (
0 votes
Jessica Bate…, Agent, Beverly Hills, CA
Sun Jul 21, 2013
FHA really isn't credit score driven, it's the Banks and Lenders that set those score requirements. There are a few lenders that go down to 580 with FHA, I personally have closed on several homes with clients around and under 600. I recommend all my clients that have credit issues to check with The Lenders Network, check them out. If anyone can get you approved they can!
0 votes
, ,
Wed Jul 17, 2013
Good afternoon Stef,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.…

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes
Karl Roelofs, , Grand Rapids, MI
Fri May 27, 2011
Please contact me at 616 308 2631 or

I have an excellent mortgage person who should be able to help you.


Karl Roelofs
0 votes
Rob Stogsdill, Agent, Grand Rapids, MI
Fri Apr 2, 2010
In most cases yes. Most minimum requirements are 580 and above.
0 votes
Roger Daniel…, , Grand Rapids, MI
Fri Apr 2, 2010
A few lenders are providing FHA financing at the 580 credit score level. FHA will accept this score but lenders are reluctant to lend because of the risk involved. You may incur additional costs at this level. Most lenders including those who sell to Fannie Mae And Freddie Mac are at the 620 level. Your score is not far from the 620 level. You should review the specifics and see if it can be increased. Many times the score is lowered because credit limits have been decreased and your card balance is now at a lower percentage of limit as a result of this. That is an easy fix and can add 20 to 40 points to your scores. Our credit reporting agency CBC offers a service that will direct you how to increase your scores if the circumstances allow. Also, it is important to know where your score was derived. Mortgage financing requires a three merged credit report with the middle score as the determining score. If your score was derived from a single score or a retail credit report it may not be sufficient or accurate.

We do not charge for credit reports in anticipation of loan activity.

Call if you would like to clarify your position.

Roger danielski, Loan Officer
LMCU Home Mortgage
616-242-9790 x 9275
0 votes
Anna M Brocco, Agent, Williston Park, NY
Fri Apr 2, 2010
Not knowing your finances/assets--Consult with any qualified loan officer(s), see exactly what your budget can handle and check your credit score again. Currently FHA loans do require a minimum score of 620 and 3.5% down, there may be some lenders who will work with a lesser score, however the interest rate may be higher--your loan officer may offer suggestions on how to best improve your credit score in the fastest time. In the meantime, keep working diligently on repairing your credit-- pay all bills on time, get rid of old debt, pay down debt, dispute old negatives, keep credit cards below 50%, etc.
0 votes
SUZIE REINBO…, Agent, Grand Rapids, MI
Fri Apr 2, 2010
A qualified 'probably' is a good answer. There are other variables that affect credit worthiness. A loan originator will be able to explain in detail. A good place to start looking for a loan is where you currently bank. You might want to check out several lenders. My personal favorites in the Grand Rapids area are River Valley Credit Union-Lora Kroon (616-897-0564); Founders Bank and Trust-Jane Martin (616-575-3784); and Darlene VanHalsema (616-653-9626) of Fifth Third. They have been in the business many years and are very experienced, are easy to work with, and will watch out for your best interests in regard to your loan.

The credit repair that you have started will improve your score. Maybe quicker than you think possible. The better your score, the better the terms of your loan. Again, the lender you work with will be able to give you your options and help you decide on the best path to a loan and home ownership.
0 votes
Cicely Brook…, , Birmingham, MI
Fri Apr 2, 2010
A qualified maybe. Speak with a mortgage person. Remember your mortgage will also be based on your ability to repay -so presume you have a stable job and have reported income correctly on your taxes.
0 votes
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