Let’s be real for a second. If your credit score is sitting right at 620, you’re probably stressing out about buying a house. You might think banks will just laugh you out of the room. But honestly? The short answer is yes. You can absolutely get a mortgage with a 620 credit score.
It’s not going to be as smooth as someone applying with a 780 score, and you won't get those rock-bottom interest rates you see on commercials. But it is 100% doable. You just need to know which loan options to look at.
Your Best Options with a 620 Score
When you apply for a loan with a 620 score, conventional loans (the standard ones from private banks) get a bit tricky and expensive. Instead, you want to look into government-backed loans. They are way more forgiving.
- FHA Loans: This is your safest bet. The Federal Housing Administration actually allows scores as low as 580 with just a 3.5% down payment. At 620, you’re well above their minimum, which makes approval much easier.
- VA Loans: If you are a veteran, active-duty military, or a surviving spouse, VA loans are amazing. They don’t officially set a minimum credit score, though most lenders like to see at least a 620. Plus, there is zero down payment required.
- USDA Loans: Looking to buy a home in a rural or suburban area? The USDA loan is another great choice with no down payment. Their automated system loves a 620 score or higher.
The Real Math: What a 620 Score Actually Costs You
Lenders use your credit score to price their risk. A lower score means a higher interest rate, and that significantly impacts your monthly budget.
For example, let’s look at a $300,000 fixed-rate mortgage. If you had a prime credit score of 760+, you might qualify for a 6.5% interest rate, making your principal and interest payment roughly $1,896 a month.
But with a 620 credit score, a lender might bump your rate up to 7.4%. Suddenly, that exact same $300,000 loan costs you around $2,076 a month. That’s an extra $180 every single month, which adds up to over $64,000 more in interest over the life of a 30-year loan.
Because your 620 score signals higher risk, underwriters will look at your other monthly debts under a microscope. If you have a 620 score but your auto loan and credit card payments take up less than 35% of your gross income, they are much more likely to approve your application than if your DTI was pushing 45%.
Honestly, unless you need to buy a house immediately because your lease is up, it's usually smarter to spend 60 to 90 days paying down small credit card balances. Bumping that score from a 620 to just a 640 can shift you into a completely different lending tier and wipe out a massive chunk of that extra monthly interest.
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