VA and FHA Home Loans with Bad Credit / Low Credit 500, 550, 600 Credit Scores

What is considered bad or low credit scores?

There is more to credit than just the score when it comes to getting approved for a home loan.   Just because your credit score is under 620 and you are labeled “Fair” to “Very Poor” credit doesn’t mean you cannot get approved for a home loan.

Example 1:  You have a 740 credit score “Very Good Credit”, but you just filed for a Chapter 13 Bankruptcy and you have been over 30 days late on your rent in the past 12 months.  Yes, your credit score is “Very Good” but you will not qualify for an FHA, VA or Conventional loan.

Example 2:  You have a 585 credit score “Very Poor” to “Fair”, but you have 2 years on-time rent history or living with family, no late payments on credit for the past 12 months and some medical collections from 3 years ago.  You can qualify for a home loan!

Credit is more than just a score and just because you are labeled “Fair” or “Very Poor” doesn’t mean you cannot buy, refinance or cash-out refinance a home.  You need to work with a mortgage company that follows the investor guidelines and doesn’t have credit score overlays.

***All other factors being equal, a higher credit score generally means you’ll pay lower interest rates, fees, and deposits. Over the lifetime of a loan, even a small reduction in rate can save you thousands of dollars in interest, so it pays to have a high credit score.



*** Experian Fico Score source 08.17.19

Contact Us

Access Capital Group Inc.
202 E. Earll Drive
Suite 460
Phoenix, AZ 85012

Phone: 6026485860


NMLS Consumer Access
NMLS # 33043

Arizona: MB-0904605 | California CFL License: 6038514 Loans made or arranged pursuant to a California Financing Law | Colorado: 20021150081 | Colorado: LMB100026744 | Florida: CL0700723 | Idaho 1st Mortgage: MBL-4501 / NMLS # 33043 | Maryland: #33043 | Minnesota: 20337251 | New Mexico: 01475 | North Carolina License/Registration #: B-213554 | Ohio: RM.804918.000 | Oregon: ML-4188 | South Carolina DCA: #33043 | Texas: SML #34341 | Tennessee: 33043 | Utah: 6360087-MLCO | VA - 919946-0008 | Virginia: MC-7553 | Washington MB-33043 | FHA - 18970-0000-1 and 18790 | Wyoming: MBL-1863