At this time you cannot get a home loan with a score under 620. Even programs designed for people with bad credit have set this cut off. I actually looked into this a great deal as we began our tread to a home buying last year only to find my husband who was the primary income in our partnership had horrible credit. His mid-score score was 589, I contacted a wealth of professionals on top of doing much research of my own and 620 is the cut off right now and was last year. 620 will also only qualify you for some programs and higher interest rates in many. When the economy improves this may change, however that's hard to say the housing market was hit hard by foreclosure and I think lenders learned an important lesson.

It used to be uncommon to be able to avail of a mortgage loan with a poor credit score. But creditors are becoming more flexible with credit plans so that families will be able to acquire a house through home loans. These are the ranges of mortgage loans programs for those who have bad credit or has below 600 credit score mortgage.

700 and above, you will get the best rates and terms
640-700, you will be accepted for a loan that is 125%
600-640 range, your loan will be approved with a 100% mortgage
500-600 You can still avail of a house loan provided you give a down payment.

So the lowest credit score that one can apply for home loan is with a FICO scorethat ranges from 500-600, 500 being the lowest.
This would mean that if you have a credit score that is lesser than 500, there is a slim chance of getting approved for a home loan. Nevertheless, FICO score is just one factor of your mortgage loan request. If you are turned down the first attempt, try and try again and never give up. There are still a lot of possibilities that a number of lenders will be willing to help you.

My wife and I are currently selling our house due to an upcoming addition to our family and we need additional space. My credit is a little better than hers so she was worried about as to whether or not her scores would be high enough when it came time for the loan officer at our bank to run our credit.

The good news was that she was overly concerned for nothing because our credit was approved and the process has began in both trying to sell our current home and finding a new one. I inquired with the loan officer as to what minimum credit score was needed in order to qualify for home loan. She advised that the credit score has to be at least somewhere between 600 and 620. She also advised that the lower median score is calculated when trying to determine how much we could potentially qualify for. For example, my median score from the three credit bureaus could be 720 and my wife’s could be 650. The 650 score is the score they would use to determine how much of a loan we can afford to take on.

In the United States right now, I imagine that the answer could change from month to month based on the current economic situation. However, when the market gets more stabilized, the answer is that you almost can't have a credit score that's too low. Provided you haven't declared bankruptcy for two years, you're more or less good to go. I've heard about lots of people with scores under 600 getting loans.

Of course, the sky-high interest rate may make it not worth doing, but it's definitely possible. Private lenders are another option to look into if a broker can't get you a deal with a larger financial institution.