We have a few different portfolio investors which do not have any credit score requirements, and their interest rates are right inline with FHA & FMNA. Depending on what state you are purchasing your home, and how much the purchase price will be, you would be required to put 10% down.
Some lenders do lend to borrowers with credit scores at the 600 level. However it is likely that they would be underwriting per FHA guidelines which permits these types of loans. Your best bet would be to contact a FHA approved lender who would be able to assist you in this matter. So to answer your question it is possible even with a minimal downpayment such as 3.5 percent, however there are other factors which would be looken into such as income, assets and so forth. I believe that American Financial Resources is an FHA approved lender who may be able to help you out.
Depending on what area you are looking into purchasing in you have the option of buying a home with the USDA loan program as well. This requires no down payment.CNN Mortgage provides loans through American Financial Resources and they still use the lower scores. The minimum is 620. Depending on why your credit is at 600, we can work on cleaning up your credit report of errors and old accounts and get you to 620.
Ask our community a question.