A credit score under 700 does not shut the door on buying a home. FHA loans work down to 580 with 3.5 percent down, and even lower with a larger down payment. Conventional loans often work starting around 620. Most buyers under 700 still qualify for a real mortgage today, and there are specific moves that can improve both your approval odds and your rate before you apply.
What actually happens to your options under 700
A score in the 620 to 699 range still qualifies for both FHA and many conventional loans, though conventional pricing improves noticeably as your score climbs. A score in the 580 to 619 range generally points toward FHA financing, which was built specifically for this range. Below 580, options narrow but FHA can still work with a larger down payment. VA and USDA loans, for eligible borrowers, often have more flexible internal guidelines than a strict published minimum would suggest.
A worked example
A buyer with a 650 score and 3.5 percent down can move forward with FHA financing today. If that same buyer spends 90 days paying down credit card balances and correcting a reporting error, a jump to 690 or 700 is realistic, and at that point conventional financing with lower long-term mortgage insurance costs may become the better path. Both routes get you into a home. The second one can save meaningfully more money over time.
You do not have to choose between buying now and improving your credit first. In many cases, the smarter path is buying now with the program that fits your current score, then refinancing later once your credit improves.
What actually moves a sub-700 score
- Paying down credit card balances, especially bringing any single card under 30 percent of its limit
- Disputing any inaccurate items on your credit report, which happens more often than people realize
- Making every payment on time without exception in the months leading up to applying
- Avoiding new credit applications or large purchases financed on credit right before applying
Common mistakes buyers make in this range
- Assuming a score under 700 means no approval at all. Plenty of buyers in this range close on homes every single day using FHA or conventional financing.
- Closing old credit cards to "clean up" their credit. This can actually hurt utilization and shorten credit history, sometimes lowering the score right before applying.
- Not shopping multiple lenders. Guidelines and pricing for borrowers in this credit range vary more between lenders than for borrowers with excellent credit, making comparison shopping especially valuable here.
Georgia considerations
Credit requirements are federal and do not vary by state, but Georgia buyers in this credit range often benefit from combining FHA financing with a smaller, more affordable price point in growing areas like Cherokee, Bartow, or Paulding counties, where the overall payment leaves more room in the budget even with FHA mortgage insurance included.
Frequently asked questions
Technically as low as 500 with FHA financing and a 10 percent down payment, depending on the lender. Most buyers in the lowest ranges are better served spending a few months improving their score before applying.
Not necessarily. Waiting means missing out on potential appreciation and continuing to pay rent instead of building equity. Buying now with the right program and refinancing later once your score improves is often a stronger overall strategy.
Yes, a good loan officer will review your credit report with you and point out specific, actionable items, such as high utilization or an error worth disputing, rather than just giving you a number.
Not sure where your score actually lands or what it qualifies you for? Send me a rough range and I will tell you your realistic options today.
This article is general education, not a commitment to lend or an offer of credit. Program availability, terms, rates, and qualification guidelines vary by lender and are subject to change; all loans are subject to underwriting and final approval. Market figures are approximate and change over time. For guidance specific to your situation, reach out directly. Garrett Potz, NMLS #631592 · Affinity Home Lending, Company NMLS #1181151 · Equal Housing Lender.