If your credit score is too low for a home loan, a score under 620 does not automatically end the search. FHA, VA, USDA and non-QM programs set different minimums, and lenders add their own rules on top. LowerMortgageRates.com is Duane Buziak, NMLS #1110647 (Coast2Coast Mortgage LLC, NMLS #376205), a mortgage broker unaffiliated with Lower.com. Duane shops 500+ wholesale lenders per file and is licensed in VA, FL, TN, GA, DC, NC, SC and MD only.
By the end you will know which program fits your score, what to fix first, and what the rate gap costs in dollars. You need your approximate score and a rough picture of income and debts. NoTouch Credit Pull, a soft credit pull mortgage pre-approval that is not a hard inquiry and does not lower your score, lets you check options with a no credit hit mortgage application.
Step 1: Pull your three credit reports and find the score lenders will use
The score that counts is the middle of your three bureau scores, and it often differs from the free score in a banking app. Mortgage pricing uses the middle score across Equifax, Experian and TransUnion, and the scoring models behind app scores are frequently not the ones mortgage underwriting uses. With a co-borrower, many programs use the lower of the two middle scores.
Start by getting your reports free at AnnualCreditReport.com. The CFPB explains how to get your free credit reports. Then read each report line by line for:
- Late payments you actually paid on time
- Accounts that are not yours
- Collections that were already paid or are listed twice
- Wrong balances or credit limits, which distort utilization
Dispute errors in writing with each bureau that shows them. The CFPB walks through how to dispute an error on your credit report, including the investigation timeline, which is generally around 30 days but should be confirmed on that page before you plan around it.
Mistake to avoid: paying for a hard-pull “mortgage score” check just to see where you stand. A hard pull is recorded on your report as an inquiry and can shave a few points. NoTouch Credit Pull is a soft-pull pre-approval: Duane reviews your file without a hard inquiry, so you get a mortgage pre approval without hard pull and your score stays where it is. A standard credit pull is still needed once you commit to a specific loan, but not to explore options.
Step 2: Match your score to the loan programs that accept it
620 is the common conventional benchmark, but FHA, VA, USDA and non-QM loans each allow lower scores. The figures below are typical ranges, not promises, and they shift with lender policy.
| Program | Typical minimum score | Down payment note | Key catch |
|---|---|---|---|
| FHA | 580 for maximum financing; 500-579 allowed | 3.5% at 580+; generally 10% at 500-579 | Mortgage insurance premiums; many lenders set higher floors |
| VA | No VA-set minimum; lender overlays apply | Often none for eligible borrowers | Duane’s access goes as low as 500 FICO on some files, depending on lender and file |
| USDA | About 640 commonly sought for automated approval (verify) | Often none | Property location and household income limits apply |
| Conventional | 620 traditionally, per Fannie Mae and Freddie Mac guidelines | As low as 3% on some products | Fannie Mae announced in late 2025 it would remove the fixed 620 minimum for Desktop Underwriter loans; confirm current status |
| Non-QM (bank statement, DSCR) | Varies by program | Often 10% to 25% or more | Higher rate in exchange for flexible documentation |
HUD publishes the FHA score and down payment tiers on its FHA loan page. The 620 figure is a guideline and lender policy, not a law.
Lenders also set “overlays,” which are stricter rules layered above the agency minimum. That is why one lender declines a 590 FHA file and another approves it. If you are a physician or other qualifying professional, ask about doctor loan programs, which can treat credit, debt and down payment differently from standard products.
Step 3: Make the fast credit fixes that move your score before you apply
The quickest gains come from correcting errors and lowering revolving balances, not from opening or closing accounts. Do these in order:
- Bring card utilization well under 30% of each limit, and under 10% if you can. Pay balances down before the statement closing date, since that is the balance usually reported.
- Keep old accounts open. Closing a card shrinks your total available credit and can raise utilization.
- Make no new credit applications while you prepare.
- Bring any past-due account current and keep every payment on time from here forward.
Mistake to avoid: paying off old collections blindly. Treatment varies by program and by lender, and a payment can restart the clock on an old debt in some situations. Ask your broker before paying anything.
Once balances are paid down or errors are fixed, a rapid rescore can show the change quickly. A rapid rescore is a lender-ordered update in which the credit bureaus refresh your report ahead of their normal monthly cycle. Consumers cannot request it directly; your broker submits it with documentation, and it typically takes several business days.
If the score will not move: do not wait indefinitely for a threshold. If the fixes are not getting you there within a reasonable window, skip ahead to Step 6 and look at programs, co-borrowers or a longer timeline.
Step 4: Run the numbers on what a lower score costs you
A lower score usually means a higher rate and higher mortgage insurance, and the difference is measurable. Here is an illustration only, using hypothetical rates on a $350,000 30-year fixed loan.
- At 6.5%, the principal and interest payment is about $2,212 per month.
- At 7.5%, it is about $2,447 per month.
- The gap is roughly $235 per month, and $235 x 360 payments is about $84,600 over 30 years, before mortgage insurance differences.
These rates are not quotes. Your actual pricing depends on score, down payment, program and date.
For a real market reference, check the Freddie Mac Primary Mortgage Market Survey, which publishes a weekly average for 30-year fixed loans. Note the posting date when you look (as of the latest Thursday release), and keep in mind that it reflects borrowers with strong profiles, so a lower score typically prices above it.
Then decide: buy now at a higher rate and refinance once your score improves, or wait and improve first. Refinancing makes sense when you pass the break-even point, which is closing costs divided by monthly savings. If a refinance costs $5,000 and saves $235 a month, you break even in about 21 months.
Loan size matters only if you are near the limits. The 2026 conforming baseline is $806,500, with a high-cost ceiling of $1,249,125, according to FHFA.
Step 5: Compare real offers through a broker using a soft pull
A soft pull mortgage broker can price your file across many lenders without a hard inquiry. Duane Buziak shops 500+ wholesale lenders per file instead of quoting one rate sheet. That matters most with lower scores, because overlays differ widely and the first “no” is often just one lender’s policy.
In practice, NoTouch Credit Pull gives you no hard inquiry mortgage pre approval, so you can compare offers without stacking inquiries on your report. In a typical retail process, a hard pull is often run at application, and each separate application can add its own inquiry. A broker route keeps the early comparison on a soft pull.
Is LowerMortgageRates the same as Lower.com? No. LowerMortgageRates.com is Duane Buziak and Coast2Coast Mortgage LLC, a mortgage broker. It is not affiliated with Lower.com, which is a direct lender.
“Dare to Compare” is Duane’s offer to beat a competing quote: send him an offer you have received, and he tries to beat it. When you hold two or more offers, compare:
- Interest rate and APR
- Lender credits and discount points
- Mortgage insurance cost and how long it lasts
- Total estimated closing costs and cash to close
Use the Loan Estimate for a true side-by-side. The CFPB’s Loan Estimate explainer shows where each figure sits on the form.
Step 6: Choose your path: apply now, add support, or build a timeline
Pick one of three paths based on Steps 2 to 5. Apply now if a program fits your score and the payment works. Strengthen the file if you are close. Set a 3-6 month plan if you are far off.
If you are close: add support
- Add a qualifying co-borrower, remembering that many programs use the lower middle score.
- Increase your down payment, which can offset a weaker score.
- Ask about down payment assistance such as Dynamo and Turbo DPA, subject to eligibility and state availability.
- If you have a thin file, ask about manual underwriting and nontraditional credit history, such as rent and utility payments.
If your income is irregular
Self-employed borrowers can look at bank statement or DSCR non-QM loans, which trade a higher rate for flexible documentation. Run the payment through the same math as Step 4 so you know what the flexibility costs.
If you are far off: build a timeline
Re-check your reports monthly, then re-run a soft pull once balances and errors have updated. Avoid large purchases and new credit throughout, including furniture or a car, since both can change your debt picture mid-process.
Next step: check your options without a credit hit
Don’t let uncertainty about mortgage rates cost you thousands. Discover your personalized options with a trusted mortgage professional who can compare rates across multiple lenders without impacting your credit score. Schedule your free consultation today and take the first step toward securing the best mortgage solution for your unique financial goals. Call Duane Buziak at 804-212-8663 for a no credit hit mortgage application via NoTouch Credit Pull. Services are available only to borrowers in VA, FL, TN, GA, DC, NC, SC and MD.