As a mortgage broker, I have relationships with multiple lenders that finance credit challenged borrowers.  Getting approved for a home loan is a layered qualification process but upfront my lenders are looking for a minimum 500 credit score to consider you for financing, in addition to the minimum credit score, a lender will review your credit history for loan consideration. Credit history always plays a role in getting qualified for a mortgage.

In general, lenders are looking for you to have re-established satisfactory credit history by showing zero late payments on your installment or housing accounts over the last 12 months, and no more than two 30 day late payments going back months 13 thru 24. On revolving accounts like credit cards, my lenders generally allow up to two 60 day late payments and zero 90 day late payments going back 12 months on your credit report.  Lenders are also looking for a minimum of 3 credit lines open on your credit report for at least 12 months. I can use “non-traditional” credit like rental history, utility bills or car insurance payments to meet the minimum credit line requirements.  The higher your credit score over 580, and the more established your credit profile, the more flexible these credit history requirements become.

Your last two years of employment history, income, current monthly debts and last 60 days of assets are also evaluated. If you’re not self-employed, then lenders require you to be a permanent W2 employee at the time of your loan application. It’s ok to have worked for a staffing agency within the past 2 years, but at the time of loan application you must be hired on as a permanent employee.

One of my lenders offers 100% financing on a Veterans Administration loan with a minimum 500 credit score. They also offer 3.5% down payment on an FHA loan with a minimum 580 credit score and 10% down payment on an FHA loan with credit scores from 579-500. USDA loans allow 100% and financing go down to 581 credit score and if you have good credit, I have a lender that offers 1% down payment with a minimum 700 credit score.
Applying for pre-qualification with me is a 2-step process.



Contact me with any questions about the mortgage approval process at 404-919-0593.

Email me your questions at I’ll include your anonymous questions and my answers in an upcoming Q&A article.

You can also, download/share my free mobile app to pre-qualify for a loan, instantly contact me and more at Or go to my website at

Featured Image: Shutterstock