Most people land at 550 after one life event, not a pattern of missed payments. A single trip to the ER, a dealership repo when the transmission blew, or a divorce that closed joint cards can each knock 80–100 points off an otherwise clean report. The good news: mortgage underwriters know this and separate "event-driven" credit bruises from chronic overspending.

At National Mortgage Home Loans we use a manual process affectionately called "human underwriting." Instead of feeding data to a black-box algorithm, our reviewers read your letter of explanation, look at your current rent receipts, and often approve you when the computer score alone says no. In 2023 we funded 312 purchase loans with credit scores between 500 and 559—proof that 550 is a starting line, not a stop sign.

• Manual underwrites can override the 620 threshold set by automated systems.
• Compensating factors like 401(k) reserves, overtime income, or a co-borrower with 620-plus can offset risk.
• We never charge added "credit risk" lender fees; your closing costs mirror those of any FHA borrower.

National Mortgage Home Loans carries three mainstream programs that welcome a 550 credit score:

1. FHA manual underwrite – 3.5% down, best rates, but requires verified rent history and usually one new re-established trade line.
2. Non-QM bank-statement loan – 10% down, uses bank deposits instead of tax returns, perfect for gig workers or restaurant owners who write off too much.
3. VA IRRRL or purchase – If you’re military, VA has no minimum score; we’ve closed at 520 recently with full entitlement.

Choosing the right path depends on three questions: Do you have 3.5% or 10% to put down? Can you document income on tax returns or only via bank statements? And are you comfortable paying a slightly higher rate today to refinance once your score improves? We’ll walk you through each scenario on a 10-minute assessment call, then email a side-by-side cost breakdown so you can see total payments, not just headline rates.

Day 1: Apply online or call. We pull a soft credit report that won’t ding your score and upload it to our borrower portal so you can see every open account.

Day 2–3: You upload pay stubs or 12 months of bank statements, whichever program fits. A dedicated loan officer calls to review any collections we can delete or pay down.

Day 4–10: If needed, we order a rapid-rescore. Most clients see a 25-point bump; the record is 72 points in 6 days after three medical deletions.

Day 11: Pre-approval letter issued. Realtors treat it like cash because we manually underwrite in-house.

Day 12–40: House hunt, sign purchase contract, and lock rate. We order appraisal and title; average turnaround is 14 business days.

Day 41–45: Final underwriting clears conditions, you sign docs, and keys are in your hand. From first click to champagne moment, the typical 550-score client closes in 38 days—faster than most conventional deals bogged down in overlays.

Predatory lenders love low-score borrowers. Red flags: charging 3–5 points upfront, steering you to 30-year fixed notes with pre-payment penalties, or pushing you toward contract-for-deed arrangements that strip equity. NMHL is a licensed lender in 29 states and abides by HUD, VA, and CFPB fee caps—our origination charge is flat $1,295 regardless of credit tier.

Also avoid maxing out credit cards to raise your score quickly; the algorithm punishes utilization spikes. Instead, open one small secured card, keep the balance under 10%, and pay utility bills on time. Finally, don’t let multiple lenders pull your credit repeatedly. All mortgage inquiries within 45 days count as one, but credit-card and personal-loan pulls do not. Keep shopping contained and strategic.