Can You Get a Mortgage with a 646 Credit Score in 2023?
If your credit score is a 646 or higher, and you meet other requirements, you should not have any problem getting a mortgage. Credit scores in the 620-680 range are generally considered fair credit. There are many mortgage lenders that offer loan programs to borrowers with credit scores in the 500s. Therefore, if you have a 646 or higher credit score, you should not be short on options.
The types of programs that are available to borrowers with a 646 credit score are: conventional loans, FHA loans, VA loans, USDA loans, jumbo loans, and non-prime loans. With a 646 score, you may potentially be eligible for several different types of mortgage programs.
Conventional Loan with 646 Credit Score
The minimum credit score requirement to get a conventional loan is 646. In order to qualify for a conventional loan, you will need to meet all other loan requirements. This includes having at least 2 years of steady employment, a down payment of at least 3-5%, and no recent major credit events (such as a bankruptcy or foreclosure).
Would you like to find out if you qualify for a conventional loan? We can help match you with a mortgage lender that offers conventional loans in your location.
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FHA Loan with 646 Credit Score
FHA loans only require that you have a 580 credit score, so with a 646 FICO, you can definitely meet the credit score requirements. With a 646 credit score, you should also be offered a better interest rate than with a 580-619 FICO score.
Other FHA loan requirements are that you have at least 2 years of employment, which you will be required to provide 2 years of tax returns, and your 2 most recent pay stubs. The maximum debt-to-income ratio is 43% (unless you have satisfactory “compensating factors”, such as a higher down payment, or cash reserves).
Something that attracts many borrowers to FHA loans is that the down payment requirement is only 3.5%, and this money can be borrowed, gifted, or provided through a down payment assistance program.
Click here to find out if you qualify for an FHA loan.
USDA Loan with 646 Credit Score
The minimum credit score requirements for USDA loans is now a 640 (for an automated approval). Therefore, with a 646 credit score, you will satisfy the credit score requirements for a USDA loan.
Other requirements for USDA loans are that you purchase a property in an eligible area. USDA loans are only available in rural areas, as well as on the outer areas of major cities. You can not get a USDA loan in cities or larger towns.
You also will need to show 2 years of consistent employment, and provide the necessary income documentation (2 years tax returns, and 2 recent pay stubs).
Click here to find out if you qualify for a USDA loan
646 Credit Score Mortgage Lenders
Below is a list of some of the best mortgage lenders for borrowers that have a 646 credit score. All of the following lenders offer conventional and FHA loans, and can help you determine what options might be available to you. If you would like some assistance finding a lender, we can help match you with a lender that offers loan options to borrowers with a 646 credit score. To get matched with a mortgage lender, please fill out this form.
3.) Guaranteed Rate
4.) Supreme Lending
6.) US Bank
7.) Flagstar Bank
8.) American Financial Network
9.) Freedom Mortgage
10.) Loan Depot
The lenders featured above all offer mortgage loans to borrowers with a 646 credit score. If you would like some help finding a lender, we can match you with a lender that offers home loans in your location.
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Frequently Asked Questions
Can I get a jumbo loan with a 646 credit score?
The minimum credit score required to get a jumbo loan depends on the lender. Most jumbo lenders require a borrower to have a credit score of at least 720. However, there are several non-prime lenders that offers jumbo loans to borrowers with credit scores as low as 600.
Can I get a VA loan with a 646 credit score?
If you are eligible for a VA loan (which are exclusively for veterans), you may be able to qualify with a 646 credit score.
What if I have had a major credit issue in recent years?
If you have had a bankruptcy, foreclosure, or short sale, there are several non-prime lenders that offer home loans to borrowers even just 1 day after such events.
What do non-prime loans offer?
Non-prime loans provide an opportunity to get a mortgage for borrowers that do not qualify for conventional and FHA loans. They have much less strict credit requirements, including no waiting periods after bankruptcies, foreclosures, and short sales. Non-prime loans also are available to borrowers with credit scores as low as 500 (or even below 500).
Are there other credit requirements that I should know about?
Most mortgage lenders require that you have 3 trade-lines on your credit report. This can be auto loans, credit cards, personal loans, or other qualifying lines of credit. There can be exceptions to this rule, including alternative bills that are often allowed (phone bills, utilities, etc.).
What are the interest rates for a borrower with a 646 credit score?
The interest rate will depend on your individual qualifications, the mortgage lender, and the date you lock your interest rate. We can help connect you with a mortgage lender that offers free rate quotes. To have a mortgage lender contact you, please fill out this form.
Is down payment assistance available to someone with a 646 credit score?
Yes, in fact many down payment assistance programs are available to borrowers with a 646 credit score. The types of programs that exist include both local (city, county, or state level), and nationwide programs. A mortgage lender can help you see if you qualify for down payment assistance. If you have lower income, you are even more likely to qualify, as these programs are often intended for lower income households.