Sarah broke down his primary option: an FHA loan, insured by the Federal Housing Administration. She explained that the FHA allows borrowers with credit scores as low as 580 to qualify with a down payment of just 3.5 percent. David breathed a sigh of relief; he had saved enough to cover that amount. However, Sarah quickly added that his 590 score put him right on the edge. Because he was in the sub-620 territory, lenders would scrutinize his file manually rather than relying on automated underwriting software.
The fluorescent lights of the bank felt particularly harsh as David sat across from the mortgage broker, clutching a folder of bank statements. He had found the perfect starter home—a modest two-bedroom bungalow with a yard for his dog. But his credit score was 590, a scar from a period of medical bills and a maxed-out credit card a few years back. He braced himself for a flat refusal. can i buy a house with a 590 credit score
The broker, a woman named Sarah, looked at the number on her screen and didn’t flinch. She explained that while a 590 score meant traditional, conventional loans were out of reach, homeownership was definitely still on the table. David learned that with a score below 620, the path forward required navigating specific government-backed programs and overcoming a few strict financial hurdles. Sarah broke down his primary option: an FHA