Can You Buy a House With a 620 Credit Score in Michigan? (2026 Guide)
If your credit score is around 620 and you’re thinking about buying a home in Michigan, you may be wondering whether your credit is good enough to qualify for a mortgage.
The short answer is yes, a 620 credit score can potentially qualify for a mortgage.
But your credit score is only one part of the approval process.
Your income, debt-to-income ratio, down payment, assets, employment history, recent credit activity and the type of mortgage you’re applying for can all affect whether you’re approved.
There is also an important distinction between meeting a mortgage program’s basic guidelines and actually receiving an approval through mortgage underwriting.
So rather than asking only, “Can I buy a house with a 620 credit score?” a better question is:
What mortgage options might I have with a 620 score, and what else will a lender look at?
Let’s break it down.
Is a 620 Credit Score Good Enough to Buy a House?
Potentially, yes.
A 620 credit score is not automatically too low to buy a home.
For example, Freddie Mac currently lists a 620 minimum Indicator Score for many of its fixed-rate mortgages, unless otherwise specified. Fannie Mae’s rules are a little more nuanced in 2026: manually underwritten fixed-rate loans generally have a 620 minimum, while loans run through Fannie Mae’s Desktop Underwriter do not have a universal minimum credit score. Instead, DU evaluates the overall credit risk of the application. Fannie Mae Selling Guide
That last point is important.
Mortgage approval isn’t always as simple as:
620 = approved
619 = denied
Automated underwriting systems evaluate multiple characteristics of the loan and borrower together. Fannie Mae describes this as a comprehensive risk assessment involving factors such as credit history, equity investment, reserves and reliable income. Fannie Mae Selling Guide
That’s one reason two borrowers with identical credit scores can receive very different mortgage results.
What Mortgage Can You Get With a 620 Credit Score?
Several mortgage options may potentially be available to a Michigan homebuyer with a 620 credit score.
Two of the most important ones to understand are Conventional loans and FHA loans.
Conventional Loans With a 620 Credit Score
A Conventional mortgage may be possible with a 620 credit score, depending on the transaction and underwriting results.
As noted above, Fannie Mae currently requires 620 for manually underwritten fixed-rate loans, while its Desktop Underwriter evaluates loan files without one universal minimum score. Freddie Mac lists 620 as the minimum Indicator Score for many fixed-rate mortgages unless another requirement applies. Fannie Mae Selling Guide
But qualifying at 620 does not mean you’ll receive the same mortgage terms as someone with substantially stronger credit.
Credit can affect both approval and pricing.
Fannie Mae, for example, uses the representative credit score when assessing certain loan-level price adjustments. Fannie Mae Selling Guide
So someone with a 620 score may potentially qualify for a Conventional loan but receive different pricing than a borrower with a 700, 740 or 780 score.
That’s why we don’t look only at whether a borrower can qualify.
We also compare whether Conventional financing is actually the best structure for that borrower.
Can You Get an FHA Loan With a 620 Credit Score?
A 620 credit score may also put FHA financing on the table.
In fact, FHA’s underlying credit-score rules can permit scores below 620. HUD states that FHA policy permits scores of 580 and above, with scores as low as 500 potentially permitted when the borrower has an equity position of at least 10%. Individual lenders can have additional requirements beyond FHA’s baseline rules. HUD
That means a borrower with a 620 score shouldn’t automatically assume that FHA is their only option.
Depending on the rest of the application, we may be able to compare both FHA and Conventional financing.
For some borrowers FHA may be more forgiving.
For others, Conventional financing may make more sense.
The better option depends on much more than the number displayed on the credit report.
FHA vs. Conventional With a 620 Credit Score
This is where mortgage shopping becomes more interesting.
Imagine two Michigan homebuyers who both have a 620 credit score.
Buyer A has:
- Low monthly debt
- Stable income
- Money in savings
- A solid employment history
- No recent late payments
Buyer B also has a 620 score but has:
- High credit card balances
- A higher debt-to-income ratio
- Very little money remaining after closing
- Recent late payments
- Several newly opened accounts
The credit score is identical.
The overall loan profile isn’t.
That’s why choosing between an FHA vs. Conventional loan shouldn’t be based solely on a credit-score chart.
We need to look at the entire application.
What Else Does a Mortgage Lender Look At Besides Credit Score?
Credit gets a lot of attention because it’s easy to reduce it to one number.
Mortgage qualification isn’t that simple.
A lender may also evaluate:
Income
You need sufficient qualifying income to support the proposed mortgage payment and your other monthly obligations.
The way income is calculated can also vary depending on whether you’re salaried, hourly, self-employed or receive overtime, bonuses or commissions.
Debt-to-Income Ratio
Your debt-to-income ratio, or DTI, compares qualifying monthly debts with qualifying income.
Someone with a 620 credit score and very little monthly debt may have a different mortgage profile from someone with the same score who already has substantial monthly obligations.
Down Payment
The amount you’re putting down can affect the structure of the loan and available options.
You don’t necessarily need a 20% down payment to buy a house.
Depending on the mortgage program and your qualifications, significantly smaller down payments may be possible.
Assets and Reserves
The lender may need to verify the money required for your down payment, closing costs and other expenses associated with the transaction.
Having additional money remaining after closing can also strengthen certain loan scenarios.
Employment
Lenders generally want to establish that the income being used to qualify is stable and likely to continue.
That doesn’t mean you must have worked for the same employer for years.
Even starting a new job doesn’t necessarily prevent you from getting a mortgage.
Credit History
The lender isn’t necessarily looking only at the score.
Your actual credit report tells a much larger story.
Payment history, revolving balances, collections, recent inquiries, newly opened accounts and other credit activity may all matter.
A 620 Credit Score Doesn’t Tell the Whole Story
This is probably the most important thing to understand.
Your mortgage isn’t approved by looking at one number in isolation.
A 620 score could represent someone who had credit problems several years ago and has steadily rebuilt their finances.
It could also represent someone whose credit has recently deteriorated.
Those aren’t necessarily the same underwriting situation.
Fannie Mae’s underwriting framework specifically considers the borrower’s broader credit history and other risk factors rather than treating the credit score as the entire credit decision. Fannie Mae Selling Guide
That’s why I wouldn’t tell a Michigan homebuyer with a 620 score:
“Your credit isn’t good enough.”
I also wouldn’t tell them:
“You’re definitely approved.”
I’d want to see the complete picture first.
Does a 620 Credit Score Mean You’ll Pay a Higher Mortgage Rate?
Potentially.
Your credit profile can affect mortgage pricing, particularly with Conventional financing. In general, stronger credit can result in more favorable pricing, while lower scores can result in additional pricing adjustments.
But credit score isn’t the only factor that determines your mortgage rate.
Pricing can also be affected by factors such as:
- Loan type
- Down payment
- Loan-to-value ratio
- Property type
- Occupancy
- Loan amount
- Whether you’re paying discount points
- Current mortgage market conditions
This is why comparing mortgage options matters.
A borrower with a 620 score shouldn’t assume the first rate they’re quoted is automatically the best option available to them.
Is There a Big Difference Between a 620 and 640 Credit Score?
There can be.
A relatively small improvement in your credit score can sometimes change available mortgage options, underwriting results or pricing.
But there isn’t a universal rule that says:
620 = bad mortgage
640 = good mortgage
Credit thresholds and pricing adjustments vary by mortgage program and sometimes by lender.
If you’re sitting at a 620 and have time before purchasing, it can be worth reviewing your credit to determine whether there are realistic opportunities to improve the score.
Sometimes there are.
Sometimes there aren’t.
And occasionally, trying to improve the score the wrong way can actually create problems.
What About a 680, 700 or 740 Credit Score?
As credit improves, Conventional mortgage pricing can generally become more favorable, although the exact impact depends on the complete loan scenario and pricing in effect at the time.
The important takeaway isn’t that every borrower needs to reach a particular number before buying.
It’s that your credit score can affect more than whether you qualify.
It can potentially affect the cost of the mortgage.
Suppose you’re able to qualify today with a 620 score but could realistically improve your score within a relatively short period.
We can compare the potential benefit of waiting against the cost of delaying the home purchase.
On the other hand, if improving from 620 to a higher score would take a year, waiting may not necessarily make sense.
That’s a financial decision we can evaluate rather than relying on an arbitrary credit-score target.
Why Is My Mortgage Credit Score Different From Credit Karma?
This surprises a lot of homebuyers.
The credit score you see through a free credit-monitoring service, bank or credit card company may not be the same score a mortgage lender receives.
That’s because there are multiple credit-scoring models.
Different industries can use different models and versions of those models.
So if an app tells you that your credit score is 650, don’t assume your mortgage credit score will also be exactly 650.
It might be higher.
It might be lower.
If you’re seriously considering buying a house, a mortgage pre-approval gives you a much better picture of how your credit actually fits into mortgage qualification.
Can Paying Down Credit Cards Improve Your Credit Score?
It can.
One factor that can affect credit scores is credit utilization, which generally compares the balances on revolving accounts with their available credit limits.
For example:
If you have a credit card with a $10,000 limit and a $9,000 balance, you’re using 90% of the available credit on that account.
Paying that balance down can reduce utilization.
For some borrowers, reducing high revolving balances may improve the credit profile and potentially the score.
But don’t randomly start paying accounts off because you read online that it’s good for your credit.
If you’re preparing for a mortgage, we should look at the entire situation first.
You may have a limited amount of cash available, and that money may also be needed for your down payment, closing costs or reserves.
The question isn’t simply:
“How do I get the highest possible credit score?”
It’s:
“How do we put you in the strongest overall position to buy the house?”
Should You Pay Off All Your Debt Before Applying for a Mortgage?
Not necessarily.
This is another common misconception.
Imagine you have $25,000 in savings and a $7,000 auto loan.
You could use $7,000 to pay off the car.
But depending on the circumstances, that may leave you with less money for the down payment, closing costs and reserves.
Maybe eliminating the car payment dramatically improves your debt-to-income ratio.
If so, paying it off could be valuable.
But perhaps the car payment isn’t preventing you from qualifying at all.
In that situation, preserving the cash may be more useful.
We want to know what problem we’re trying to solve before moving money around.
Should You Close Credit Cards Before Buying a House?
Generally, don’t start closing credit accounts simply because you’re applying for a mortgage.
Closing an account can change your available revolving credit and potentially affect utilization and other aspects of your credit profile.
If the card has a zero balance and isn’t causing a problem, there may be little reason to close it immediately before applying for a mortgage.
If you’re already in the mortgage process, it’s a good idea to talk with your loan officer before making significant changes to your credit.
Should You Open a New Credit Card to Improve Your Score?
I wouldn’t make that decision without first reviewing the mortgage timeline.
Opening new credit can result in a credit inquiry and a new account appearing on your report.
That doesn’t mean opening a credit card is always harmful.
But if you’re planning to buy a house in the near future, you don’t want to make unnecessary changes to your credit profile without understanding how they might affect the mortgage.
Once you’re pre-approved, keeping your financial situation relatively stable is generally a good strategy.
Do Late Payments Matter When Applying for a Mortgage?
Yes.
A late payment can matter beyond its effect on your numerical credit score.
Mortgage lenders may consider both the score and the underlying credit history.
Recent late payments can be particularly important because they may indicate a more recent problem managing obligations.
The type of late payment can matter too.
A recent mortgage late payment may be viewed differently from an older late payment on another account.
That doesn’t mean one late payment automatically prevents you from buying a house.
It means we need to understand what happened, when it happened and how the rest of the credit profile looks.
Can You Buy a House With Collections on Your Credit Report?
Potentially.
Having a collection account doesn’t automatically mean you can’t get a mortgage.
How a collection is treated can depend on the mortgage program, type of collection, amount, age and overall credit profile.
Medical collections can also be treated differently from other types of collection accounts under certain mortgage guidelines and credit-scoring practices.
One of the biggest mistakes borrowers make is assuming they should immediately pay every collection account before applying.
That may or may not be necessary.
Before paying or settling an old collection specifically to qualify for a mortgage, talk with your mortgage professional about how the account is actually affecting the loan.
What About Charge-Offs?
A charge-off also doesn’t necessarily mean homeownership is impossible.
As with collections, the mortgage program and details of the account matter.
We need to evaluate:
- How old the account is
- The balance
- Whether it’s still reporting
- Whether there are recent late payments
- Whether repayment is required under the applicable loan guidelines
- How the account affects automated underwriting
The important point is that you shouldn’t assume an old derogatory account automatically disqualifies you.
Can You Buy a House After Bankruptcy With a 620 Credit Score?
Potentially, yes.
The credit score is only part of the equation after bankruptcy.
Mortgage programs can have specific waiting periods and requirements depending on the type of bankruptcy, discharge or dismissal date, circumstances and loan program.
So someone could rebuild their credit to 620 or higher and still need to satisfy a required waiting period.
Conversely, once the applicable requirements have been met, a previous bankruptcy doesn’t necessarily prevent someone from becoming a homeowner again.
How Quickly Can a Credit Score Improve?
There’s no guaranteed timeline.
Some credit changes can potentially affect a score relatively quickly once updated information is reported to the credit bureaus.
Other credit issues require time.
For example, reducing high revolving balances may have a different timeline than recovering from a recent serious late payment.
That’s why I’d be skeptical of anyone promising to increase your score by a specific number of points in a specific number of days.
Instead, we can identify the areas of the credit profile that may be holding the score down and determine whether there are reasonable steps worth taking.
What Is a Rapid Rescore?
A rapid rescore is not a trick that simply adds points to your credit score.
It’s a process mortgage lenders may be able to use in certain situations to have updated credit information reflected more quickly after a documented change has occurred.
For example, if a borrower pays down a credit card balance, there may be circumstances where updated documentation can be submitted through the appropriate process rather than waiting for the creditor’s normal reporting cycle.
The scoring model still determines the score.
A rapid rescore simply may allow qualifying updated information to be reflected sooner.
It isn’t guaranteed to improve your score, and it isn’t something a consumer generally orders independently as a way to manufacture a higher score.
Don’t Try to Repair Your Credit in the Middle of a Mortgage Without a Plan
This is probably the advice I’d emphasize most to someone with a 620 credit score.
Don’t panic and start changing everything.
Don’t automatically:
- Close credit cards
- Open new credit cards
- Pay every collection
- Pay off every installment loan
- Move all your savings toward debt
- Dispute accounts without understanding the mortgage implications
Some of those actions might help.
Others might accomplish nothing.
And some could complicate the mortgage process.
The better approach is to first determine why your score is where it is and what, if anything, actually needs to change for the mortgage you’re trying to obtain.
A 620 credit score may already be enough to move forward.
If it isn’t, then we can work backward from the mortgage requirements and develop a more targeted plan.
Can First-Time Homebuyers Buy a House With a 620 Credit Score?
Yes, potentially.
Being a first-time homebuyer doesn’t mean you need perfect credit, and a 620 credit score doesn’t automatically prevent you from purchasing a home.
Depending on the rest of your financial profile, you may have access to several mortgage options.
The bigger question is whether you’re financially prepared for the entire purchase, including:
- Down payment
- Closing costs
- Monthly mortgage payment
- Property taxes
- Homeowners insurance
- Mortgage insurance, when applicable
- Maintenance and unexpected homeownership expenses
This is why getting pre-approved for a mortgage before shopping for homes is so important.
A good pre-approval isn’t simply a letter saying you’re eligible to borrow a certain amount. It should help you understand how different loan options affect your payment, cash required at closing and overall cost.
How Much Down Payment Do You Need With a 620 Credit Score?
You don’t necessarily need 20% down.
Depending on your qualifications and mortgage program, considerably smaller down payments may be available.
For example, Conventional financing can offer low-down-payment options for qualifying borrowers, while FHA financing can also provide a relatively low minimum down payment for eligible borrowers.
There may also be down payment assistance programs available to some Michigan homebuyers.
The best strategy isn’t necessarily putting down every dollar you have.
If putting an additional $10,000 down leaves you with almost nothing in savings after closing, we should compare that with keeping some of that money available as reserves.
Your down payment should be part of the overall financial plan, not an arbitrary target.
Should You Use FHA With a 620 Credit Score?
Maybe.
FHA can be a very useful mortgage option for borrowers with lower credit scores or other characteristics that make Conventional financing more difficult.
But FHA isn’t automatically the best mortgage simply because your score is 620.
There are other factors to compare, including:
- Interest rate and pricing
- Mortgage insurance
- Down payment
- Monthly payment
- Cash required at closing
- Debt-to-income ratio
- Automated underwriting results
- How long you expect to own the home
In some cases, FHA may clearly make more sense.
In others, a Conventional loan may still be competitive.
This is why an FHA vs. Conventional comparison should use your actual numbers rather than a generic online rule.
Should You Wait Until Your Credit Score Improves Before Buying?
Not necessarily.
Suppose you’re at 620 today and could realistically improve to 640 or 660 within a few months.
If that improvement substantially changes your mortgage pricing or available options, waiting might be worth considering.
But suppose your score is 620 and there isn’t an obvious path to significantly improving it in the near future.
Waiting simply because someone told you that you need a 700 score to buy a house may accomplish very little.
There are other considerations too.
Home prices can change.
Mortgage rates can change.
Your income can change.
The particular house you want may no longer be available.
Nobody knows exactly what all of those variables will do.
Instead of trying to perfectly time everything, compare the financing available to you today with the realistic benefit of waiting.
Then you can make an informed decision.
Example: Buying a House With a 620 Credit Score
Imagine a Michigan homebuyer with:
Credit score: 620
Purchase price: $275,000
Stable employment: Yes
Manageable monthly debt: Yes
Down payment funds: Available
Recent major credit problems: None
Rather than assuming this borrower needs to spend the next year repairing credit, we could evaluate both FHA and Conventional options.
Maybe FHA produces the stronger overall approval.
Maybe Conventional works and the pricing is reasonable.
Or perhaps improving the credit score slightly creates enough financial benefit that waiting a short period makes sense.
We don’t know until we run the numbers.
That’s the advantage of comparing mortgage options instead of making the decision based solely on a credit score.
What if Your Credit Score Is Below 620?
Don’t automatically assume you can’t buy a house.
Some mortgage programs may permit credit scores below 620, although the available options can become more limited and lender requirements can vary.
FHA financing, for example, can potentially accommodate lower credit scores under program guidelines, although individual lenders may impose additional requirements.
The first step should still be evaluating the complete credit and financial profile.
If you can’t qualify today, we can identify what’s preventing the approval.
That gives you something much more useful than:
“Come back when your credit is better.”
Instead, you can have an actual plan.
Maybe the issue is credit utilization.
Maybe it’s DTI.
Maybe you need additional savings.
Maybe enough time needs to pass after a significant credit event.
Or maybe you’re closer to qualifying than you thought.
What if Your Credit Score Is Above 620?
The same principle applies in the other direction.
A 700 or 740 credit score doesn’t automatically guarantee mortgage approval.
Someone can have excellent credit but still have difficulty qualifying because of insufficient income, excessive monthly debt, employment or income documentation issues, or insufficient funds to complete the transaction.
Credit is important.
It just isn’t the entire mortgage application.
Does a 620 Credit Score Affect How Much House You Can Afford?
Indirectly, it can.
Your maximum purchase price is primarily affected by factors such as:
- Qualifying income
- Monthly debts
- Interest rate
- Property taxes
- Homeowners insurance
- Mortgage insurance
- Down payment
- Mortgage program
Your credit profile can influence the interest rate, mortgage insurance and available financing options, which can then affect your monthly payment.
That’s why two borrowers earning exactly the same income may qualify differently.
A mortgage calculator can be useful for estimating payments, but a full mortgage pre-approval provides a much better picture of your actual buying power.
How Do You Get Pre-Approved With a 620 Credit Score?
The process is essentially the same as it is for someone with stronger credit.
We’ll typically review information regarding your:
- Income
- Employment
- Assets
- Monthly debts
- Credit
- Proposed down payment
- Desired purchase price
Then we can evaluate available mortgage programs and run the loan through the appropriate underwriting process.
If the numbers work, we can issue a pre-approval.
If something needs to be addressed first, we can identify it before you spend weeks looking at houses.
What Should You Do After Getting Pre-Approved?
Once you’re pre-approved and actively shopping for a home, avoid making unnecessary financial changes.
That means being careful about:
- Opening new credit
- Financing furniture
- Buying or leasing a vehicle
- Running up credit card balances
- Changing jobs without discussing it first
- Moving large amounts of money without documentation
- Co-signing for someone else’s debt
Your mortgage approval is based on a financial picture that exists at a particular point in time.
Significant changes before closing can cause the lender to reevaluate the loan.
Once your offer is accepted, the mortgage will move through processing, appraisal and mortgage underwriting before eventually reaching clear to close.
Frequently Asked Questions About Buying a House With a 620 Credit Score
Can I buy a house with a 620 credit score?
Potentially, yes. A 620 credit score can fall within the range accepted by certain mortgage programs, but approval depends on the complete loan application.
Can I get a Conventional loan with a 620 credit score?
Potentially. Conventional eligibility depends on the specific loan, underwriting method and overall borrower profile.
Can I get an FHA loan with a 620 credit score?
Potentially, yes. FHA guidelines can permit credit scores below 620, although individual lenders may have additional requirements.
Do I need 20% down with a 620 credit score?
No. A 20% down payment isn’t universally required to purchase a home. Available minimum down payments depend on the mortgage program and your qualifications.
Is 620 considered bad credit for a mortgage?
A 620 score may provide mortgage options, although it can affect pricing and available programs compared with a stronger credit profile.
Rather than attaching a label to the score, it’s more useful to determine what financing is actually available.
Is FHA better than Conventional with a 620 score?
Not automatically.
FHA may be more favorable for some borrowers, while Conventional financing may work better for others. The comparison should include the rate, mortgage insurance, down payment, monthly payment, closing costs and overall loan structure.
Can I get down payment assistance with a 620 credit score?
Possibly. Down payment assistance programs have their own eligibility requirements, which can include credit, income, purchase price, location and other restrictions.
Will paying off credit cards help me qualify?
It can in some situations.
Paying down revolving balances may potentially affect both your credit profile and monthly debt obligations. However, don’t use money needed for your down payment or closing without first determining whether paying down the debt actually improves your mortgage scenario.
Should I apply for a mortgage if my score is only 620?
If you’re seriously considering purchasing a home, having your situation evaluated can tell you considerably more than looking at the score alone.
You may qualify now.
And if you don’t, you’ll know what specifically needs to change.
Will checking my mortgage options hurt my credit?
A mortgage lender may need to obtain a credit report as part of determining your qualifications. Before proceeding, your loan officer can explain when credit will be pulled and what type of credit inquiry will be used.
Buying a Home in Michigan With a 620 Credit Score
If your credit score is around 620, don’t automatically count yourself out of buying a home.
You also shouldn’t assume that hitting 620 guarantees an approval.
The number is simply one part of the mortgage.
At BrightSide Lending, we’ll look at your complete financial picture and compare the mortgage options available to you.
If you’re ready to buy now, we’ll help you understand the available options.
If improving your credit first could meaningfully improve your financing, we’ll explain what we’re seeing and why waiting may be worth considering.
And if something is preventing you from qualifying today, we’ll help identify the issue so you know what you’re working toward.
The goal isn’t simply to get you approved for a mortgage.
It’s to help you understand your options so you can make a smart decision about buying a home.
More Than a Mortgage. A Brighter Tomorrow.
