Conventional Loans With Lower Credit Scores
Scored below 620? At least one conventional program we offer lists a 580 minimum score, and at least one sets no minimum when Fannie Mae’s Desktop Underwriter approves the loan.
What a lower-score conventional loan requires
Each item below is a requirement of Fannie Mae or at least one conventional program we offer.
- At least one program lists a 580 minimum score on both its Fannie Mae and Freddie Mac matrices.
- The loan needs an automated approval: DU Approve/Eligible or LPA Accept.
- The programs we offer at these scores do not permit manual underwriting.
- At least one Fannie Mae program sets no minimum score, but at least one borrower must have a score.
- If one borrower has no score, the borrowers with a score must bring in more than half the qualifying income.
- HomeReady and Home Possible loans at a 580 score are for a home you will live in.
Scores from 580 considered
No set minimum on DU
Room for an unscored co-borrower
Purchase or refinance
Second homes and rentals
Clear answers on 620 floors
Can You Get A Conventional Loan Below 620?
Yes, with some programs. At least one lists 580, and at least one has no set minimum when DU approves the loan.
Fannie Mae does not require a minimum credit score for loans run through its Desktop Underwriter (DU). DU does its own analysis of the credit report, so the score is not an integral part of its risk assessment. Floors still differ by program. At least one program we offer lists 580 for purchase, refinance, second home and investment property loans on both its DU and Freddie Mac Loan Product Advisor (LPA) matrices, while another starts at 620.
The catch is the approval. These programs need DU Approve/Eligible or LPA Accept, and they do not allow manual underwriting. Fannie Mae’s own floors for manually underwritten loans are 620 for fixed-rate loans and 640 for adjustable-rate loans. Fannie Mae also lets a manually underwritten HomeReady loan on a one-unit home fall below its minimum score when the low score comes from thin credit rather than derogatory credit and the lender builds a nontraditional credit profile. The HomeReady programs we offer require a DU approval.
Scores can also be mixed. At least one program allows a borrower with no score, as long as at least one borrower has a score and the borrowers with a score bring in more than half the qualifying income. Another program requires every borrower to have a score and uses the lowest one. If no one on the loan has a score, see our no credit score home loan page.
Why choose Saxton for a lower-score conventional loan
This page is for buyers and owners with scores under 620 who would rather have a conventional loan.
580 Is On The Matrix
At least one program lists a 580 minimum score on its Fannie Mae DU and Freddie Mac LPA matrices. The loan still needs an automated approval.
DU Sets No Fixed Floor
Fannie Mae does not require a minimum score for DU loan casefiles. At least one program we offer adds no minimum score of its own.
One Borrower Can Be Unscored
At least one program allows a borrower with no score if another borrower has one. The borrowers with a score must bring in more than half the qualifying income.
Not Just Your First Home
At least one program lists 580 for second homes and investment properties too. Some one-unit investment loans still need a 680 score, depending on how much of the price is financed.
We Know Where 620 Applies
Some programs start at 620, including at least one program’s Freddie Mac line. Fannie Mae’s manual underwriting floor is also 620 for fixed-rate loans.
Extras Can Raise The Bar
Some features need a higher score. At least one program requires 660 for a temporary buydown, and another requires 680 with lender-paid mortgage insurance.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about conventional loans with lower credit scores.
At least one program we offer lists 580 on both its Fannie Mae and Freddie Mac matrices. At least one Fannie Mae program sets no minimum score when DU returns Approve/Eligible. Other programs start at 620.
Not for loans approved through DU. Fannie Mae sets no minimum score for DU loan casefiles. Its 620 floor applies to manually underwritten fixed-rate loans, and 640 applies to manually underwritten adjustable-rate loans.
Not through the programs on this page. They require DU Approve/Eligible or LPA Accept and do not allow manual underwriting. An FHA loan may be worth comparing.
At least one program allows it. At least one borrower must have a score, and the borrowers with a score must bring in more than half the qualifying income. Another program requires a score for every borrower.
At least one program lists 580 for both, for a primary residence only, with DU Approve/Eligible for HomeReady and LPA Accept for Home Possible. At least one HomeReady program sets no minimum score, while at least one Home Possible program starts at 620.
At least one program lists 580 for investment property purchases and refinances on its DU and LPA matrices. Some one-unit investment loans still need a 680 score, depending on how much of the price is financed.
At least one program requires 660 for a temporary buydown. At least one requires 680 when mortgage insurance is lender-paid, and that program uses the lowest score among all borrowers.
Find out what you qualify for
Tell us your score and what you want to buy or refinance, and we will show you the conventional options that fit.
Get Pre-Qualified- Consumer Financial Protection Bureau, buying a house: tools and resources for homebuyers
- Consumer Financial Protection Bureau, mortgages
Loan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.