These lenders offer mortgages that make qualifying possible, starting with a 500 credit score.
The best mortgage lenders often require a minimum credit score of 620 to qualify for a loan. However, lenders also consider factors like your income and existing debt in their approval decisions. This can make qualifying tricky if you barely meet the 620 mark.
However, the best mortgage lenders for a 620 credit score often have lower requirements and consider factors beyond your credit score. We’ve broken down the best lenders in this category to help simplify your search.
Quick Winners List
Best for Down Payment Assistance: CrossCountry Mortgage
Pros
- Offers several down payment assistance programs
- Buy or refinance in as little as 21 days
- 120 options for buying, refinancing, and home equity
- Numerous branches
Cons
- No online pre-approvals
- Doesn’t advertise rates
- Rates aren’t the lowest available
CrossCountry Mortgage is a mortgage lender based in Cleveland, Ohio. Founded in 2003, it has expanded to hundreds of branches nationwide and services mortgages in all 50 states, including D.C. and Puerto Rico. The company has grown to thousands of employees and has been recognized on the Inc. 5000 list.
CrossCountry offers several down payment assistance programs, making it a good choice for first-time homebuyers. Most of these programs are grants, meaning they don’t require repayment. Depending on the program and requirements, you may qualify for up to $6,000 or up to 5% of the purchase price. However, several have income and geographic restrictions, so you must work with a loan officer to determine your options.
Minimum credit score: 500
Minimum down payment: Not disclosed
Loan types offered: Conventional, FHA, VA, USDA, jumbo
States served: All 50 states plus D.C. and Puerto Rico
Best Mortgage Marketplace: eMortgage
Pros
- Connect with up to five competing mortgage lenders
- Quick comparison of rates
- Minimum credit score of 500
- Mortgage loans for self-employed people
- Website includes a rate comparison page
Cons
- Using a marketplace could create added complexity
- Some borrowers may prefer a more traditional process
Minimum credit score: 500
Minimum down payment: 0% (for VA loans)
Loan types offered: Conventional, FHA, VA, USDA, jumbo
States served: All 50 states plus D.C.
eMortgage is an independent mortgage advertising and comparison service. The site is owned and operated by HSH.com, a mortgage comparison service based in Las Vegas, Nevada. eMortgage lets borrowers quickly compare multiple lenders, showing up to five options based on their information. Because it pairs people with multiple potential lenders, it can help borrowers find almost any loan type.
In addition to conventional loans, it offers FHA, VA and USDA loans and options for self-employed individuals. Some of its top lending partners underwrite loans nationwide, and getting a loan with a credit score as low as 500 is possible. The website also features a page that lets you quickly compare rates from various top lenders and a mortgage calculator.
Best for Flexible Terms: New American Funding
Pros:
- Choose from loan terms of eight to 30 years
- Up to $7,500 in down payment assistance
- Use loans to cover closing costs
- Can combine down payment assistance with other offers
- Program available for all-cash offers
Cons:
- Online quote tool requires personal information
- Fees can be high
New American Funding (NAF) was founded in 2003 by Rick and Patty Arvielo. Since then, the company has grown rapidly to hundreds of branches nationwide. Its portfolio is valued at over $71 billion and has hundreds of thousands of loans. It operates in all 50 states and works with Fannie Mae, Freddie Mac, and Ginnie Mae.
NAF offers several loan types, including the I CAN mortgage program. With I CAN, you choose from repayment plans ranging from eight to 30 years. Loans of up to $806,500 are available through the program, with down payments starting at 5% for primary residences. NAF also offers up to $7,500 in down payment assistance when you purchase a home. If you’ve experienced financial difficulties, NAF may work with Chapter 7 bankruptcies.
Minimum credit score: 500
Minimum down payment: 0%
Loan types offered: Conventional, FHA, VA, USDA, jumbo, I CAN and other loan options
States served: All 50 states plus D.C. and Puerto Rico
Best for Fast Approval: Rate
Pros:
- Approval in as little as 24 hours
- Serves all 50 states and D.C.
- Offers several loan types
- Wide footprint of branches
- Online rates updated frequently
Cons:
- 620 is the minimum credit score
- Not all states have branches
- Fees could be higher than other lenders
Rate (previously Guaranteed Rate) is a financial services company and mortgage lender based in Chicago, Illinois. While it also offers products like personal loans and insurance, mortgage lending is the company’s focus. It offers purchase and refinance loans, and you can quickly view rates on its website. Rate’s mortgages include conventional, FHA, VA and jumbo loans. No USDA loans are available.
Rate has hundreds of branches in the U.S., though it has more branches in Illinois than other states. Depending on where you live, there may not be any physical branches nearby. However, Rate has a simple online application, so handling everything from the comfort of your home is possible.
Best for Discounts: SoFi
Pros
- Several discounts for closing costs
- Customizable rates
- Simple application process
- Up to a $10,000 close-on-time guarantee
Cons
- No USDA loans
- Requires 600 credit score for FHA and VA
- Only a handful of bank branches
SoFi (also known as Social Finance) is a financial technology company founded in 2011 at Standford University. Initially focusing on student loan refinancing, it expanded its offerings to include mortgages beginning in 2014. It later added personal loans, banking, and investing. The company officially became a nationally chartered bank in 2022.
SoFi primarily operates online, though it acquired California-based Golden Pacific Bank in 2022, along with the bank’s three branches. Most SoFi customers will go through the simple online mortgage application. SoFi offers several discounts, including a $500 discount on the origination fee. SoFi Plus members can get an additional $500 discount. During the application process, you’ll see a personalized rate quote indicating what rate you may receive based on factors like your credit history and the purchase price.
Minimum credit score: 600
Minimum down payment: 0% (VA loans)
Loan types offered: Conventional, FHA, VA, jumbo, refinance, home equity
States served: All 50 states except NY
What Kind of Credit Score is a 620?
A 620 credit score is considered fair, according to FICO. It is one step above poor credit, FICO’s lowest credit score range, and one step below the “good” range.
FICO’s credit score ranges are as follows:
- Poor: 300 to 579
- Fair: 580 to 669
- Good: 670 to 739
- Very good: 740 to 799
- Excellent: 800 to 850
In this context, it becomes clear that while 620 is not a bad credit score, it leaves significant room for improvement. If you have a 620 credit score, you may have missed several payments in the past and perhaps had a major adverse event, such as a bankruptcy declaration.
Although a 620 credit score is not the best, you still have options. The lenders mentioned in this article may be willing to work with borrowers with a 620 credit score or higher. Those offering government-backed loans like FHA and VA may be willing to lend to borrowers with scores as low as 500. However, you may need to put more money down if your credit score is low. Generally, a higher credit score increases your approval odds.
Requirements for Getting a Mortgage with a 620 Credit Score
Requirements for a mortgage with a 620 credit score vary, sometimes significantly, depending on the loan type. A 620 credit score is often the minimum score for conventional loans, which are not government-backed. You generally must put at least 5% down with a conventional mortgage. However, if your credit score is right at the minimum, you may struggle to qualify for a conventional mortgage.
Some government-backed mortgages, such as FHA loans, have lower credit score requirements. Many lenders require a credit score of at least 580 and a down payment of at least 3.5%. FHA lenders are sometimes willing to work with borrowers with credit scores as low as 500, but that often comes with certain caveats, such as making a larger down payment (usually 10%).
However, it’s important to vet the lender, says Carlie Ransom, CFP and co-founder of Equal Path Investments LLC. “Most loan officers can facilitate FHA loans, but prospective homebuyers should verify that their chosen lender is FHA-approved,” Ransom says. “Additionally, certain lenders specialize in guiding clients with lower credit scores through the application process, providing valuable support and education throughout.”
Another option is a non-QM loan, which is intended for borrowers who don’t meet the typical requirements. You may qualify for a non-QM loan through various methods, such as showing sufficient income with bank statements or providing proof of sufficient assets.
Other requirements are similar regardless of the loan type. For instance, borrowers typically look for a debt-to-income (DTI) of 50% or lower. Your DTI is the ratio of your monthly debt payments to your monthly income. Borrowers may also ask for proof of income with W-2s, pay stubs, or tax returns.
Another common requirement is having enough cash reserves, such as two months of expenses. “A common oversight among borrowers with lower credit scores is insufficient post-closing liquidity – having one to three months of mortgage payments in reserve significantly improves lender confidence,” Ransom says.
Why You Should Trust Us
As a personal finance writer with over six years of experience, I understand how tough it can be to find the best mortgage lender, especially with a 620 credit score. That’s why I have spent countless hours researching products and services, including the lenders mentioned here. As a writer, I’ve meticulously interviewed industry experts who have given their best insights.
Carlie Ransom, who provided expert input for this piece, has been a Certified Financial Planner (CFP) and Accredited Investment Fiduciary (AIF) since 2015. Ransom has worked directly with clients with debt and student loans and is familiar with borrowers with less-than-perfect credit.
Benzinga was founded in 2010 and is a trusted source for news on investing, insurance, mortgages and other topics. Our audience of over 25 million readers trusts Benzinga to consistently provide informative, high-quality content.
Methodology
Using Benzinga’s multi-point methodology, I compared mortgage products from 23 mortgage lenders to identify the best lenders for a 620 credit score. The factors that weighed heavily in my selections were rates and fees, various options, and customer service. In addition, lenders that approve borrowers with lower credit scores received a boost.
Customer service experiences can be subjective, so I also considered scores and reviews on independent platforms. This includes places like TrustPilot, BBB and Zillow. No mortgage lender has a perfect score, but the lenders that fared well often have high scores on one or more third-party review sites.
Applying for a mortgage can be challenging, so I looked for lenders with a simple application. Those allowing borrowers to apply online without inundating them with too many questions received high marks.
See Benzinga’s full methodology for a complete overview of how we determine the best mortgage lenders.
FAQ
A
The rate you can get with a 620 credit score may vary depending on how the lender calculates its rates, but factors like your DTI and income often play a significant role. According to Zillow, average mortgage rates are 6.33% right now, but your rate will likely be higher.
“With FHA loans, a 620 credit score will generally increase interest rates by 0.5% to 1% compared to borrowers with higher scores, with variation depending on the specific lender,” Ransom says.
A
The size of the mortgage loan you can get with a 620 credit score depends on factors like the loan type and where you live. Take FHA loans, for example. In some states, loan amounts top out at around $500,000. In others, loan limits can be upwards of $2 million.
A
A 620 credit score is “fair,” according to FICO. This is the second-lowest tier on FICO’s scale, with poor being the lowest. There are five tiers on FICO’s credit-scoring model.
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