Absolutely. A 640 credit score qualifies you for all major mortgage programs with competitive terms. You are solidly in the 'good credit' range for mortgage lending. At this level, you have access to conventional loans with as little as 3% down, FHA, VA, USDA, and even DSCR loans for investment properties. Your focus should be on comparing programs to find the optimal combination of rate, fees, and down payment.

Expect rates in the 5.75-6.5% range depending on your loan type, down payment, and loan amount. Conventional loans may price slightly higher than FHA at this score level, but the ability to cancel PMI later can make conventional more attractive long-term. VA loans typically offer the best rates across all credit levels. Contact NMHL for a personalized rate quote based on your complete financial profile.

Yes, at 640 you become eligible for DSCR (Debt Service Coverage Ratio) loans, which qualify you based on the property's rental income rather than your personal income. These loans typically require 20-25% down and the property's rent must cover 1.0-1.25x the monthly mortgage payment. This opens the door to building a real estate investment portfolio while your personal credit continues to improve.

Compared to a borrower with a 760+ score, you might pay 0.75-1.5% more in interest. On a $300,000 30-year loan, this translates to approximately $135-$280 more per month. While meaningful, this gap narrows significantly as you approach 680-700. Many borrowers purchase at 640 and refinance within 1-2 years after their score improves to capture better rates.