A 600 credit score gives you access to FHA loans (3.5% down), VA loans (0% down for veterans), and USDA loans (0% down in eligible areas). You are also closer to conventional loan eligibility at 620. FHA loans offer the most straightforward path with competitive rates and flexible qualifying criteria. An NMHL loan officer can pre-qualify you in minutes and identify the best program.

You are just 20 points away from the conventional loan threshold of 620. Conventional loans offer advantages like lower mortgage insurance that can be removed at 80% loan-to-value, and potentially better rates. With focused credit improvement over 2-4 months, reaching 620 is very achievable. In the meantime, FHA loans provide an excellent path to homeownership.

With FHA loans, you pay Mortgage Insurance Premium (MIP) regardless of your down payment — currently 0.55% annually for most loans. This is added to your monthly payment. VA loans have no monthly mortgage insurance at all, just a one-time funding fee. If you can reach 620 for a conventional loan with 20% down, you can avoid PMI entirely.

To get the best possible rate with a 600 score: (1) Make the largest down payment you can afford. (2) Choose a shorter loan term like 15 or 20 years. (3) Shop multiple lenders — NMHL compares options from numerous lending partners. (4) Consider buying discount points to lower your rate. (5) Demonstrate strong compensating factors like low debt-to-income ratio and cash reserves.