Are you looking to purchase a home but have a credit score of 615? Don’t worry, you are not alone. Many Americans have credit scores in this range and still want to become homeowners. The good news is that there are mortgage lenders out there who will work with you and help you achieve your dream of becoming a homeowner.
What Is a Credit Score?
Before we dive into the specific mortgage lenders who work with credit scores of 615, let’s first discuss what a credit score is and why it is important. Your credit score is a number that is calculated based on your credit history. It reflects your creditworthiness and is used by lenders to determine whether or not to approve you for a loan and what interest rate to offer you.
The higher your credit score, the better your chances of getting approved for a loan and receiving a lower interest rate. A credit score of 615 is considered fair, which means that you may have some negative marks on your credit report but also some positive ones.
Mortgage Lenders Who Work with 615 Credit Scores
Now that you understand the importance of your credit score let’s discuss some mortgage lenders who work with credit scores of 615. These lenders understand that not everyone has a perfect credit score and are willing to work with you to help you achieve your dream of homeownership.
FHA Loans
The Federal Housing Administration (FHA) offers loans to people with credit scores as low as 500. However, if your credit score is between 500 and 579, you will need to put down at least 10% of the home’s purchase price. If your credit score is between 580 and 619, you will need to put down at least 3.5%. While these requirements may seem daunting, they can be a great option for those with lower credit scores.
Veteran’s Affairs (VA) Loans
If you are a veteran or active-duty military personnel, you may be eligible for a VA loan. These loans do not have a minimum credit score requirement, but the lender you work with may have their own requirements. VA loans also do not require a down payment.
USDA Loans
The United States Department of Agriculture (USDA) offers loans to people who live in rural areas and have lower credit scores. The minimum credit score requirement for a USDA loan is 640, but some lenders may work with credit scores as low as 615. These loans also do not require a down payment.
Improving Your Credit Score
While there are mortgage lenders who work with credit scores of 615, it is always a good idea to work on improving your credit score if possible. The higher your credit score, the better your chances of getting approved for a loan and receiving a lower interest rate. Here are some tips for improving your credit score:
- Pay your bills on time
- Keep your credit card balances low
- Do not apply for too much credit at once
- Check your credit report for errors and dispute any inaccuracies
Conclusion
If you have a credit score of 615 and want to become a homeowner, there are mortgage lenders out there who will work with you. FHA, VA, and USDA loans are all great options for those with lower credit scores. Just remember that improving your credit score is always a good idea and can help you get approved for a loan with a lower interest rate.